From Hao Sun at TWP:

Crude Oil is the most heavily traded energy product on the CMC Markets Next Generation platform. However the other energy products; Heating Oil, Natural Gas and Gasoline are currently poised for some interesting potential trading opportunities and worth our consideration. Today, I am going to discuss some of them and share my trade plans with you.

Since the beginning of 2015, Natural Gas has been stuck in a prolonged trading range – the downward momentum has started to increase since September. The daily chart is in a strong downtrend now with fanning moving averages and price has pulled back into the daily moving average sell zone (between the 10 and 20 period moving averages). If today’s price action prints a small bearish candle, then a potential trend flow setup could emerge with initial target at the swing low of 2.343 with a further possible target at the 2.0000 psychological level.

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Heating Oil is currently in a trend across the monthly, weekly and daily time frames. Price is trading below the 1.5000 psychological level which confluences with the lows from last week and last month. Yesterday’s price range was the smallest over the past 4 days – an indication of potential big move ahead. A flat level is forming on the 1 hour chart and if price is to retest the 1.4566 level again with more small candles consolidating above it, then I will raise a momentum breakout order to short this product.

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Gasoline has broken out of a daily congestion as well with price currently inside the 4 hour chart moving average sell zone. I am stalking a small bearish candle in the next 4-8 hours for a potential trend flow setup to the short side. Or, looking at the shorter 1 hour timeframe, if price reverses lower now to test the 1.3131 level again, then I am anticipating a momentum breakout setup. Either way I will be watching this product closely. The potential target area for a trade would be the 1.3000 level.

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If you would like to learn more about the trading strategies I use and my methods for assessing for potential trading opportunities then register for the CMC Markets Advanced course.