July Natural gas ended a corrective pullback on the June 9threversal swing day (marked by the green arrow on the chart). The newly confirmed reaction swing received additional bullish confirmation when N-gas gapped higher at the open of the June 14th trading session and then closed 225 points higher for the day. It appeared that N-gas was off and running as bullish news appeared everywhere. However, the run came to an sudden halt, three days before the June 18th projected reversal date, when N-gas reached a confluence of resistance where the down-sloping reaction line (red line) crossed over the up-sloping parallel line (blue line). This is where the market formed a double top, right after the open of Wednesday’s session and right before N-gas reversed and began to tumble lower. This price action is a classic example of price exceeding time. This type of price action is fairly common in explosive markets and also great example of the value of understanding “action-reaction” and how it can be used to identify critical market price levels well in advance. Can you see how this could help in you trading? Learn more at www.tradersnetwork.com or by reading “Unlocking Wealth, Secret to Market Timing.’
×
Comments are closed.