Natural Gas Triggers Major Sell Signal
Natural gas, like oil and other energy stocks, is ready to crater.
Remember, the way to make money in a bear market is to sell weakness. Weakness means the trend or support has broken.
In natural gas, we can see recent support has failed, similar to the oil short set-up.
Zooming out a bit, you can see greater support has also failed at a major Fibonacci level and 2021 highs…
Zooming out even further, we can see that every time there’s been a major penetration of the upper Bollinger, price sells off.
Also, the monthly chart is forming a bearish engulfing; if this holds this week, expect major selling pressure.
Ways to Bet Against Natural Gas
You can buy KOLD, which is a leveraged ETF that goes up when Natural Gas goes down; or you can buy Puts on the Natural Gas ETF $USO.
Keep your stop losses tight!
Happy Trading 😊