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)…
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