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MACRO VIEW: NATURAL GAS RANGEBOUND TRADING

MACRO VIEW: NATURAL GAS RANGEBOUND TRADING

Natural Gas NYMEX:NG1!

Natural gas is trading sideways within 1st standard deviation on quarterly basis (in relation to 66-day mean) since May 2015. This creates good trading opportunities for those who know how to deal with the lateral chop in the markets. Within compressing volatility (measure by 3.2 st deviations from the same mean), traders can pick longs and shorts toward the mean, when price approaches the 1st standard deviation from within. Stops should be placed a bit beyond relevant highs and lows, tagging of which will hint that a leg of trend is actually in the cards.