Trading the trend: long natural gas
Renewed strength in natural gas has brought it to the attention of IG’s chief market analyst Chris Beauchamp. He is going long natural gas with a stop at 3150, below the lows of the second half of October.
(Video Transcript Summary)
Betting against USD still on
Last week's video talked about a trading strategy that involved betting against the [currency:US dollar]. The British pound was getting weaker compared to the dollar, and although it hadn't quite reached a certain level, the overall trend indicated that it would probably continue to go down.
The host also noticed that the strength of the upward movement was weakening and there was a possibility that it could reach its lowest point in October or even go lower.
Betting on natural gas to go up
For this week's trading idea. IG's chief market analyst Chris Beauchamp recommends going in the opposite direction and bet on natural gas to go up in value. Since the beginning of August, natural gas has been on an upward trend. There have been consecutive higher lows and higher highs, showing that the rally is gaining strength.
The expectation is that this trend will continue for a while. The suggestion is to invest in natural gas and set a safety net at 3,150, which is lower than the lowest point in October. They believe that as more people demand natural gas, its value will keep increasing and the upward trend will continue.
Overall, last week was all about betting against the US dollar, but this week's idea is to go long or invest in natural gas.
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