Monday, December 27, 2010

More NG charts

So here are my charts from yesterday and why I was looking to get long NG. We have a series of higher lows after a long 8-month sell off. Considering it is winter, this asset can't go to zero, and I'm comfortable with the margin requirement for taking out a new low, I favored getting long here. But I didn't like the overhead resistance line. Sometime in the next two days one of these trends has to break. So I chose the short put rather than just getting long.

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