Jun 212012

NG 07 12 (1 Min) 06.21.12

6/21/2012 Weekly Natural Gas Inventory Report (0430 HI time / 1030 EDT)
Forecast: 64B
Actual: 62B
Started @ 2.546
1st Peak @ 2.505 / Reverse to 2.638 – 0431 (1 min)
-41 ticks / 92 ticks

Reversal to 2.554 – 0449 (19 min)
84 ticks

Notes: A nearly matching report caused indecision and a larger double wicker with a span of over 130 ticks as it dropped 41 ticks then rallied for 133. After seeing the indecisive reaction and noting the near matching report, it would be safe and reasonable to sell the peak and buy the dip as big oscillations will happen for about 1 hr. In this case, I would sell on the 33 bar when it could not eclipse the height of the 31 bar and the R1 Pivot. Then note the upward slope and use the 50 SMA as the floor of support and buy when it drops a few ticks under. It continued to use the 50 SMA for support up for 90 min after when a larger reversal took over and it fought through all the SMAs