Chart of the Day - Tuesday, May 5th, 2020
Breakout confirmed. Let's see where it goes... pic.twitter.com/w9fS18CaQd
— Ian McMillan, CMT (@the_chart_life) May 5, 2020
Today’s Chart of the Day was shared on Twitter by Ian McMillan (@the_chart_life). It is a three-hour candlestick chart of Natural Gas Futures year-to-date. As you can see, price has spent the majority of the year carving out a base, with a brick wall of resistance around $2.00. After testing and failing at this level numerous times over the past few months, Ian points out that price has finally made a decisive breakout. Identifying support & resistance levels like this simplifies trading decisions by providing you a clear level to trade against. In this case, if price is above $2.00, the risk is to the upside. If price is below $2.00, the risk is to the downside.