click chart to enlarge
This is an update to the Natural Gas price move we have been covering the past week or so. By now those who have been reading this blog spot have seen our use of Fibonacci retracements and extensions. As can be seen in this daily chart of the November Natural Gas futures the first .618 retracement level of significance has been reached at today’s high (Wed. 9/16/09). It’s still open as we prepare this and could continue to new daily highs, but we have learned through experience the value of these ratios.
This also doesn’t mean that the move is over. It is, though, something traders should not only be aware of but perhaps use as a barometer for adjusting their trading positions. This could mean adjusting quantity or stops. It may mean for some traders that new trade initiation is in order. It could also be to trade against it or to now watch for a new signal if and when the level is penetrated.
Whatever it may be, we felt it notable and important enough to get the word out that this level of significance has been hit.
Happy trading
Jeff and Diego
CB&S
Division of MF Global Inc.
jmajer@mfglobal.com
dpilar@mfglobal.com
312 261-7380
800 321-5810
www.cbandsbrokerage.com
Futures and options trading contain substantial risk of loss and may not be suitable for all investors.
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