Natural gas is set up to move lower. A quick visual check reveals that sentiment is shifting in the larger cycles, favoring bears. There is a clear peak forming and it has lost volume on the recent up-move. This favors shorts into the weekend, as Russia seems to have lost power over Europe once and for all eternity. Especially losing neighbors to NATO!

A stop above the may 18th high should produce enough cushion for a move to at least 7.5.

Such trades are scalps and not needed, the equities trading is much easier. However, I wanted to keep the reader posted after having traded it in April.

The $NG futures are showing weakness here overnight, and potential moves to 7.00 for patient traders is possible.

That would be 3 to 1 Reward to risk if held from now here at market short, until $7.00.

The thing is there are larger cycle projections that could move $NG to $6.50 over next month, so be aware of entering early here.

Proper entry is during market hours when imbalance in the tape is seen. Because it is futures, its best to trade like a futures trader. Alternative is to try to wait for consolidation in the next 2 days and enter at the top of a 60 minute period of absorption at highs. Its liable to stop out the trader with a stop above yesterday, as stated. But with the day entry, THE EARLY TRADER GETS THE DROP (and a good stop to hide behind intraday). And its real tuff work! But the cyclicality is saying it has to head down from these inflated levels for the larger cycles to complete their process.

-regards.

###