Commodities NGAS D1 | Our expectations:
The price seems to have found a bottom at about 2.50 and forms Double bottom, with the base line being broken with a gap and the formation is active, which gives a good opportunity to look for new long positions at least toward a test of 50 SMA with SL 2.60.
Possible ways of positioning are two - entry now, which is on the aggressive approach or after filling the gap around 2,715.
DeM Sequential has counted up to 5, and we can expect an extra raise in the next at least four bars.
DeM (14) points upwards and has not yet reached an overbought market area - a positive signal.
SMA50 and SMA200 have formed deadly crossing - a negative signal, but this does not preclude a new SMA50 test.
Alternative scenario: If the price returns and the bar closes back below the formation's baseline, it will break the positive scenario and we will probably see consolidation around the current levels.
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