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Natural Gas Bullish (but Just for Two Weeks)

Natural Gas, commodity, spread trading

Natural Gas, commodity, spread tradingMy view about Natural Gas is bullish, at least for the next two weeks. As you can see in the chart below of the future delivery December, the price is moving for a few weeks inside a Rectangle.

Currently, it is in the support area of the Rectangle, and the RSI indicator (I set it at 7 periods) is very close to the oversold area (30.65 October 3).

Natural Gas, commodity, spread trading

 

The seasonality is bullish only for, about, a couple of weeks as you can see by the two averages. Usually from first days of September to mid-October is the period of supply of Natural Gas for the winter. However, we can still exploit next two weeks working on it. How? The different possibility for different portfolios. Buying the future, the mini-future, or a Call option (in the alternative, selling a Bull Put ).

The last thing, the contract has delivery December but it will expire November 28.

 
Seasonalgo, seasonal trading, spread trading, commodity market

 

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