NG still inside a long-term bearish channel, is now trading near the upper channel boundary. This is a great shorting opportunity with tight stops above 3$. If history repeats itslelf like the past two times NG was trading at the upper channel boundary, we should soon expect the start of a sell off towards 2.60$ and lower.
Taking a closer look to recent price behavior I think of two possible ways to trade this. Sell on a break of the sideways range (2.86$ support) or sell now at 2.93$ with the highs as stops for both cases. Price made a new short-term higher high today but the RSI did not follow. This is a non-confirmed high and we can see more selling pressures arrive here soon. Price already is trading 0.06$ lower than the high at noon.
A break below 2.86$ will open the way for a move to 2.77-2.72$ very fast. I’m bearish NG expecting a sell off soon.
Thank you for taking the time to catch up on my thinking.