On analysis of the Natural Gas futures, I find that the bullish trend is still intact. Despite witnessing a gap-down opening in January, Natural Gas, being the most liquid commodity of the World, always remains very indecisive. Most of the time it behaves against all odds, and this is the reason it is very difficult to map the upcoming moves of Natural Gas futures.
On analysis of the movements of Natural Gas futures during the past last fifteen years, I find that sometimes Natural Gas price moves are against all odds with steep moves that negate all fundamentals.
First of all, the only reason behind the unexpected directional change is the changing sentiments of traders who remain swinging amid fear and greed more than any other factor. The quantum of fear and greed always remains on the top of the agenda for everyone trading Natural Gas. I, therefore, find that this only public sentiments which drive the Natural Gas futures.
Now the question is how to determine Natural Gas traders’ sentiments; and who will determine the public sentiments while every other individual has his own different view at the same time. I find that the price level of Natural Gas is only one of the factors of public sentiments.
I, therefore, decided to define these level after a directional move to determine the public sentiments at a particular point of time a particular level; which determine the next directional move after a little bit of consolidation. Second, the most important component of this Sentiment-Meter is the position of moving averages at that particular time.
The Natural Gas traders always look too anxious after a Gap-up or Gap-down opening on the first trading session of the Week. Weekly opening always plays an important role in diverting public sentiments in a particular direction. If the public finds a gap-up, bears feel too eager to short, while on the other hand bulls feel full of renewed energy to come back in full swing. And, finally, both of them start to neglect all other factors. And, the public sentiments come at the front stage which brings an attitudinal change in the directional move of Natural Gas futures all of a sudden in opposite direction. Let’s see how to determine public sentiments in order to define our strict stop loss and targets level and entry or exit point in Natural Gas futures. The video includes my analysis of the Natural Gas futures with a Natural Gas Sentiments Meter from January 20th to February 6th, 2019, .
Natural Gas Futures 4 Hr. Chart – Expected Trading Zones From January 20th February 6th, 2019
Natural Gas Futures 1 Hr. Chart – Expected Trading Zones From January 20th – 25th, 2019
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