Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and all things Wall Street. Today, we are focusing on the latest developments in the natural gas market.
Last week, natural gas prices hit a new high of 3.16 before experiencing a pullback from sellers. This led to a bearish weekly signal earlier this week, with trading near the week’s lows. If the support level of 2.70 is broken, we could see a rapid test of the 200-Day MA at 2.47.
Taking into consideration the recent swing low of 2.475 and a 38.2% Fibonacci retracement level at 2.55, there is a possibility of a lower price zone around 2.37 as indicated by the bearish weekly pattern. However, a breakout below the 200-Day MA might lead to further downside to the convergence of the 50-Day MA and the 50% retracement level.
On the upside, a potential bullish reversal could occur if natural gas prices break above 2.77, a level that aligns with the 20-Day MA at 2.78. Breaking above the 20-Day line would provide a more reliable signal of strength. Today, the market recognized the 20-Day MA as a key resistance level, leading to a retracement to lower levels. Still, a breakout above 2.77 could signal a shift in momentum.
For those interested in staying updated on economic events influencing the market, be sure to check out our economic calendar for the latest information.
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