Have you ever tracked your progress during your oil and gas trading journey and seen such trades? Read on… and come aboard! In the previous edition published last week and updated on Monday, I projected the likelihood of a sturdy support level on the gas market – Henry Hub Natural Gas (NGZ21) Futures – for going long around the $5.268-5.361 zone (yellow band), with a relatively tight stop just below $5.070 and targets at $5.750 and $5.890. So, the market indeed sank just below that band to trigger an entry on Monday, and then it was suddenly pushed back up by the bulls waiting to take over the price to the upward direction. This long trade was also supported by the fundamentals, as the heating needs for the month of November were gradually increasing. The weather forecasts appeared to orientate the demand upwards backed by an uninterrupted demand for Liquefied Natural gas (LNG) US exports. Then, Nat-Gas hit the first target at $5.750 on Wednesday, and stopped at the $5.876 mark – located just $0.014 below the second projected target at $5.890 – on Thursday! Regarding Crude Oil, a new entry, provided to our premium subscribers on Wednesday has just being triggered. The black gold is now attempting to rebound onto that support, which acts as a new floor. Trading Charts Chart – Henry Hub Natural Gas (NGZ21) Futures (December contract, daily chart) Now, let’s zoom into the 4H chart to observe the recent price action all around the abovementioned levels of our trade plan: Chart – Henry Hub Natural Gas (NGZ21) Futures (December contract, 4H chart) In conclusion, my trading approach has led me to suggest some long trades around potential key supports - natural gas recently offered multiple opportunities to take advantage of dips onto those projected levels. If you don’t want to miss any future trading alerts, make sure to look at our Premium Section. Have a nice weekend! Like what you’ve read? Subscribe for our daily newsletter today, and you'll get 7 days of FREE access to our premium daily Oil Trading Alerts as well as our other Alerts. Sign up for the free newsletter today! Thank you. Sebastien BischeriOil & Gas Trading Strategist * * * * * The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

With the OPEC+ meeting on Thursday, oil looks to be in a corrective phase, as pressure is on for more crude. Are we looking at bearish winds ahead? Crude oil prices have started their corrective wave, as we are approaching the monthly OPEC+ group meeting on Thursday, with some market participants now considering the eventuality of a larger-than-expected rise in production. U.S. API Weekly Crude Oil Stock: Inventory levels of US crude oil, gasoline and distillates stocks, American Petroleum Institute (API) via Investing.com Regarding the API figures published Tuesday, the increase in crude inventories (with 3.594 million barrels versus 1.567 million barrels expected) implies weaker demand and is normally bearish for crude prices. Meanwhile, in the United States, the average price of fuel stabilized on Tuesday after several weeks of increase, according to data from the American Automobile Association (AAA), however, that’s 60% higher than a year ago. Chart – WTI Crude Oil (CLZ21) Futures (December contract, 4H chart) In summary, we are now getting some context on how the oil market might develop in the forthcoming days, with some crucial events to monitor as they could have a strong impact on the energy markets, and particularly on the supply side. My entry levels for Natural Gas were triggered on Monday (Nov.1), and I’m updating my WTI Crude Oil projections. Like what you’ve read? Subscribe for our daily newsletter today, and you'll get 7 days of FREE access to our premium daily Oil Trading Alerts as well as our other Alerts. Sign up for the free newsletter today! Thank you. Sebastien BischeriOil & Gas Trading Strategist * * * * * The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Commodities are up sharply this year, but several short-term indicators flash caution The medium-longer term bull case remains compelling The chart of commodities ex-gold versus gold offers clues to near-term price action Commodities are on pace for their best annual performance of the century. 2021 has not been a straight line higher, however. There was a period of consolidation during late Q2 through much of Q3. August through mid-October featured another explosive move higher, bringing the GSCI Light Energy index to its highest level in more than seven years. While we are long-term positive on the commodities space, there are mixed signals in the near-term. Breadth has deteriorated while the chart of commodities ex-gold versus gold has gotten extended after dropping to extremely cheap readings last year. It might be time for a pause. Featured Chart: Commodities Ex-Gold vs. Gold Comes Full Circle Sentiment & Positioning Have Soured Another feature that takes away from a positive near-term stance is a drop in bullish sentiment and traders’ positioning. The GSCI Light Energy Index’s consensus bulls reading was nearly two standard deviations above the long-term average at its Q2 peak. Today, the market is less frothy with consensus bulls sporting a Z-score under one. So, while prices have gone up, there is a negative sentiment divergence. Futures positioning shows a similar decoupling. There are fewer speculative net longs in commodities today versus the middle of the year. Excitement has dropped. Perhaps traders are losing interest in commodities as the supply disruption narrative (short-term spike) overshadows the supercycle narrative (longer term bull market). Long-term Upside Remains Likely So, while the near-term picture has turned less encouraging, we are still bullish long-term. Technically, the big breakout that took place a year ago remains alive. A similar breakout occurred in the early 2000s which led to a massive bull run, eventually taking the GSCI Light Energy Index from under 200 to 650. For perspective, the index finished October at 520 as it ventures back into the range from 2010 to mid-2014. Valuations remain compelling, too. Our Commodities Composite Valuation Indicator dropped nearly two standard deviations below its long-term average last year and has now recovered back to neutral. That suggests no barrier to higher prices based on a valuation argument despite the 46% year-on-year rally. The Supercycle May Be Just Beginning We assert the supercycle thesis is intact. The 10-year moving average of year-on-year returns (using the Refinitiv Equal-Weight Commodities Index) dipped negative in 2020—a dismal feat rarely seen in the EW commodities index’s 120-year history. While the 10-year moving average has crept higher in 2021, projections based on our Capital Market Assumptions dataset suggest further upside in the coming decade. Fundamental Factors Finally, a significant macro theme we’ve detailed this year is the dearth in commodities capex which endured a double-dip recession in 2020. While there are one-off supply disruptions in play, the bigger picture theme of extended underinvestment in commodity supply persists. A capex boom—driven by energy firms themselves, the green & EV movements, and increased public infrastructure investment—is likely, which is a source of demand for commodities. Bottom line: We took a bullish stance on commodities in March 2020 with a timeframe of 3-5 years. Our latest Weekly Macro Themes report reiterates the stance but reduces the conviction level based on some near-term mixed signals. The long-run bullish drivers are still there: underinvestment in supply, a robust capex outlook, and continued improvement in global demand for commodities. Follow us on: Substack https://topdowncharts.substack.com/ LinkedIn https://www.linkedin.com/company/topdown-charts Twitter http://www.twitter.com/topdowncharts

Oil prices rose again on Tuesday, approaching multi-year highs amid concerns over steadily shrinking US crude reserves. Fundamental Analysis U.S. API Weekly Crude Oil Stock: Inventory levels of US crude oil, gasoline and distillates stocks, American Petroleum Institute (API) via Investing Regarding the API figures published Tuesday, the increase in crude inventories (with 2.318 million barrels versus 1.650 million barrels expected) implies weaker demand and is normally bearish for crude prices. However, we have a strongly bullish context, where the supply is still voluntarily – or not – narrowed by the OPEC+ and the global demand increases. What has to be synthesized from this report are the consecutively decreasing figures week-on-week, which are lifting prices higher. Today, we have to see whether or not these figures will be confirmed by the weekly Energy Information Administration's (EIA) report… But there is very little doubt that they won’t be, given the current environment in which black gold is progressing. Geopolitical Context On the international scene, a meeting between Iran and the European Union is likely to happen fairly quickly since the Iranian deputy minister in charge of the nuclear issue, Ali Bagheri, will meet with an European negotiator Enrique Mora this week in Brussels to discuss a resumption of negotiations in Vienna. There is no need to specify that if the negotiations are successful, the easing of sanctions will lead to the return of a large-volume market of black gold, which is currently under embargo. Chart WTI Crude Oil (CLZ21) Futures (December contract, daily chart) To sum up, we now have some context on how the oil market might develop in the forthcoming days, with some events and news to monitor, as they could have a moderated to strong impact on the ongoing lack of supply… In our daily alerts, we also analyze other markets and assets (ETFs, Futures, MLPs, stocks, etc.) of the oil and gas sector in order to get some exposure to the energy industry. Regarding natural gas, yesterday we provided a new trade plan to our members, following the last trading position, which successfully hit all the projected targets. Stay tuned to receive our next projections! Like what you’ve read? Subscribe for our daily newsletter today, and you'll get 7 days of FREE access to our premium daily Oil Trading Alerts as well as our other Alerts. Sign up for the free newsletter today! Thank you. Sebastien Bischeri Oil & Gas Trading Strategist * * * * * The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

We entered a natural gas trade on Tuesday, which turned out to be profitable… just like the previous ones! Let’s have a look at how we can continue. If you are one of Sunshine Profits’ subscribers, you should have come across our recent gas trade plan recommendation, published in our Tuesday’s “Oil & Gas Trading Alerts” edition. Trade Plan Our initial trade plan was to go long on Natural Gas [NGX21] (November 2021 contract) around $4.766-4.920 support (yellow rectangle) – with stop below $4.615 (red dotted line) and targets at $5.311 and $5.604 (green dotted lines) – See Fig. 1. The entry got triggered in the early hours of Tuesday; as you can see, the market made a rebound where the bulls took over. Our first target at $5.311 has just been hit — for those who exit partially, we suggest lifting the second target to the $5.663 level, while your stop should be lifted just below the new/recent swing low ($4.825) or at breakeven. Figure 1 – Henry Hub Natural Gas (NGX21) Futures (November contract, daily chart, logarithmic scale) That’s pretty much it. If you want to take the next trade with us, remember to sign up for our premium Oil Trading Alerts! Happy trading… …and have a great weekend! Like what you’ve read? Subscribe for our daily newsletter today, and you'll get 7 days of FREE access to our premium daily Oil Trading Alerts as well as our other Alerts. Sign up for the free newsletter today! Thank you. Sebastien Bischeri Oil & Gas Trading Strategist * * * * * The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

 Let’s focus on less-popular securities to trade energies today: Master Limited Partnership (MLP). How do they work and how can they be profitable? By the way, a big “thank you!” goes to Simon, one of our readers, who asked us about this last Friday. Feel free to send us your questions or any topics that you would like us to write about in the forthcoming editions, and we’ll try our best to answer them! Note: Trading positions are available to our premium subscribers. A good way to diversify the construction of your oil and gas investment portfolio is to use a variety of assets for balanced exposure to the energy sector and its industrial components. What Is a Master Limited Partnership (MLP)? To learn in detail what a MLP is, we invite you to read the following articles that already contain the necessary basic information you need to know before starting investing in them. Master Limited Partnership (MLP), Investopedia.com The Benefits of Master Limited Partnerships, Investopedia.com Key Reason for Going Into Those Alternative Investments The most important advantage is the high-income potential. Indeed, Master Limited Partnerships (MLPs) typically pay high yields to investors, mainly due to the fact that they do not pay corporate income taxes. Stock Watchlist (Continued) In the first article about alternative investments, we started a watchlist with some major energy stocks. Today, let’s update it! As usual, our stock-picks will be shared through this link to our dynamic watchlist (which will be included in the position from now on). It will be updated from time to time as we progress through our portfolio construction process. Take a look below at a few examples of some indicative metrics: Today we picked five oil and gas Master Limited Partnership (MLP) companies that are quoted on the US exchange. Their revenues are as stated below: Revenue (in billion US dollars): Enterprise Products Partners LP (EPD) $26.67B Energy Transfer LP (ET) $38.95B Magellan Midstream Partners LP (MMP) $2.37B MPLX LP (MPLX) $8.51B Plains All American Pipeline LP (PAA) $23.59B In summary, those alternative investments may present stable benefits and diversify your energy portfolio… So, what MLPs do you guys trade? I’ve already selected mine, as well as the exact positions associated with them. All of this (and much more!) can be found in my premium Oil Trading Alerts. As always, we’ll keep you, our subscribers, well-informed. Like what you’ve read? Subscribe for our daily newsletter today, and you'll get 7 days of FREE access to our premium daily Oil Trading Alerts as well as our other Alerts. Sign up for the free newsletter today! Thank you. Sebastien BischeriOil & Gas Trading Strategist * * * * * The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.