Commodities, and in particular Gas and Oil are currently seeing some of the strongest price increases in decades, however these markets can be more tricky to trade compared to Forex and other more common assets we trade.
On 7th April we identified an opportunity to get positioned long in Natural Gas. Price had recently retraced on back into the fair value zone and started to consolidate with a series of tight bullish candles, seen easily on the 4 hour chart.
We identified the breakout level and based our positions off the 15 minute chart consolidation as seen below.
Price initially moved higher triggering our trade open before swinging back to clip our stop and then advancing on in the direction of trend that we expected.
Although this market advanced in the direction we had anticipated it resulted in a losing trade for us, and was a good reminder that not every trade is going to be a winner.