“How to Trade Natural Gas – Weekly Chart: Natural gas is looking ready to bottom here. If you go back to the early 90’s the $2-3 range is a major support level. While I don’t generally try to pick bottoms, there are some signature price patterns and volume patterns that have proven to be very profitable for catching sharp bounces,” Chris Vermeulen Reports From Gold Seek.
“How to Trade Natural Gas – Daily Chart: The daily chart shows a perfect waterfall sell off with the price of natural gas dropping to a long term support level. This pattern combination shows panic selling which indicates a short term bottom is close. The extreme panic selling and sharp decline in price, removes much of the down side risk. Scaling into a position over a few days, if the price continues to move lower, is important for this strategy to work its magic. The black horizontal lines show my resistance levels for taking profits. If the price were to drop below $10 then I would exit the second half of the position to lock in the rest of the profit,” Chris Vermeulen Reports.