June 4, 2009 - intraday HNU.TO

HNU has been a hot topic in this blog and others over the past couple of days. I've seen many articles on nat gas and heard traders talk about watching this commodity closely.

This morning at 10:30am, the nat gas inventories reported an increase nat gas storage, which drove the price of HNU down to a low of $5.46. To see intraday action better, I've posted the chart below which shows a monthly chart of HNU, plotted on an hourly basis.


Most trading books, tell new traders to put their stop-losses just below the previous low. In this case, this would be at $5.50, a couple of ticks below the low of $5.53 on May 26th. This morning HNU went down just enough to hit these stops, only to bounce back.

Let's see how the rest of the trading day plays out....