Natural Gas Trade Idea – Formation Finder – The Cullen Outlook
This is a sample of Brian’s email newsletter, The Cullen Outlook from Friday July 1st.
Click the link to gain access to these charts and all of the trade ideas in full.
*** Check out some of the most recent posts here ***
I sent out a Formation Finder on Wednesday (6/29) and today I would like traders to take action! Refer back to that email if needed AND please take note of the mini contract size correction. Thanks
August NATURAL GAS:
2 contract sizes:
- GNGQ6 is the standard size ($100.00 per $0.01 move)
- QGQ6 is the mini contract and 1/4 size, ($25.00 per $0.01 move)
We have been on quite a run since the pennant formation breakout back on May 31st.
- Sitting up here near the 3.00 level
- The Shooting Star candlestick from Wednesday and
- Very mild to cool temperatures coming over the weekend into next week.
I don’t mind taking a shot to go SHORT with a close stop using a couple mini contracts.
*** The 2.65 level is where we paused on the run-up, found support when we tried to retrace AND would be a 50% retracement of this current leg higher off the pennant breakout ***
SELLING 2 minis to enter at 2.92 (GTC) …last traded 2.92
Risk will be the 3.02 level …($500.00 on 2 minis)
Objective will be the 2.35 level …$2,850.00 on 2 minis
(short term objective will be the 2.65 level ..$1,350.00 on 2 minis
OPTION TRADERS: Look to buy the standard contract August 2.70 put for 43 points ($430.00)
Initial margin per mini contract is $495.00
Check out the August Natural Gas chart (click to enlarge)…
Subscribe to The Cullen Outlook Product Suite
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.