At Extreme Investor Network, we are constantly monitoring the stock market and trading trends to provide our readers with unique insights and valuable information. Today, we are excited to discuss the improvement in momentum in the stock market and the potential opportunities it presents.
As we analyze the current market conditions, we see a strong closing price for the week and an improvement in momentum. This indicates that the initial targets could be exceeded, as long as demand remains strong. One key target to watch for is the completion of an extended rising ABCD pattern at 2.20, where the CD leg of the advance is 127.2% of the AB leg. Additionally, a Fibonacci retracement of 38.2% at 2.24 is confirmed by previous support from the December 11 swing low. If natural gas can break through this level, it may have a chance to test resistance around the 200-Day MA at 2.47.
In addition to the improvement in momentum, we are also seeing signs of strength in the monthly chart. The bullish reversal from February is supported by both monthly and weekly chart analysis, indicating that the rally may just be getting started. Today’s price action extends an advance off support around the lower blue dash trend channel line, suggesting further potential upside.
When prices rise above support at the bottom of a channel, the eventual target is typically the top channel line. While reaching this target will depend on market conditions and timing, it presents a potential opportunity for investors. By understanding the current market trends and potential targets, investors can make informed decisions and seize opportunities for growth.
For more information on today’s economic events and how they may impact the stock market, be sure to check out our economic calendar on Extreme Investor Network. Stay informed, stay ahead of the trends, and maximize your investment potential with us.