Natural Gas shows major inverted head and shoulder reversal pattern. How to start trading natural gas futures and exchange traded fund.


I've written to The Alien Room members on 22 Sep about a possible major recovery of Natural Gas. TAR members read here. Natural gas futures contract is found as a contract for difference (CFD) in MT4 trading platform. Alternatively, I would like to share how to start investing in Natural Gas using Exchange Traded Fund (ETF) - UNG.


Natural Gas Price

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Natural Gas Historical Prices

Natural Gas beats 10 year low
Natural Gas beats 10 year low and trading higher than 2005 low


Above is the futures chart of Natural Gas.

One thing I like to observe, is whether price has broken above any low points established previously. At this moment, price is trading above 2005 low. This says a lot about strength of bears. Natural Gas trading at $2 is like a historical low price.


How to start trading Natural Gas

In the Alien Room, we are trading the Natural Gas Contract for difference contract. It is base on Natural Gas futures contract. I have earlier alerted The Alien Room members of possible support prices that we are looking to enter.

Advantage of trading in a contract for difference is the lower margin requirement. Take Free Advance Forex Course to understand more about margin and leverage. Therefore you need less money to start trading into Natural Gas contract.

Alternatively, you could also explore Natural Gas Exchange Traded Fund - UNG.


Trading Natural Gas with Exchange Trade Fund - UNG

In the Alien Room, our objective is to grow wealth. I shared many interesting opportunities with my members. There was a session which I shared my investment in Amazon (AMZN) when it was $300. In less than 6 months, AMZN doubled and traded $700.

Similarly, today I am spending my Sunday writing about Natural Gas because I like to see my members grow their wealth not only via trading, but also with investing. Passive Income.

Let's take a look at UNG.

Historical Prices of Natural Gas
Historical Prices of Natural Gas



Head and Shoulder Reversal Pattern - A possible major reversal in Natural Gas to head up
Head and Shoulder Reversal Pattern - A possible major reversal in Natural Gas to head up


UNG is showing an inverted Head and Shoulder reversal pattern. Traditionally, there is a need for price to break above it's neckline on strong volume.

Immediate resistance is $8.90, with immediate upsize at resistance $10.50.

In the right shoulder identified, price is forming another inverted head and shoulder in daily chart. Learn all about chart pattern in my free forex course.

For Tflow® Strategy, we are able to enter at a lower price, at the low of a right shoulder prior to breakout of neckline. Such entry will result in higher reward/risk ratio. Thus $8.20 is a feasible support to consider if you are bullish about Natural Gas.  If you are thinking of an investment opportunity in UNG, then the low cost of carrying could be seen as an attractive reason now compared to previously.

If you are interested to trade into Natural Gas futures, see you in The Alien Room membership program.


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