Natural Gas Prices Eyeing 3.56: What’s Next?
Natural gas has been on quite the rollercoaster, and today’s price action suggests that it is positioning itself for a significant test of resistance at the recent swing high of 3.56. If this level is breached, we could see a rally driving prices further up to the pivotal 2023 high of 3.64. This high is particularly crucial as it delineates the upper trendlines marking a larger symmetrical triangle pattern, which could set the stage for even more pronounced movements in the market.
What makes this scenario even more intriguing is the confluence of technical indicators at these levels. The extended target for the rising ABCD pattern currently sits at 3.67. Should momentum carry through beyond this point, we could be looking at a completion of an even larger ABCD formation targeting 3.87. It’s essential to keep an eye on these levels, as a breakout above 3.64 could validate a bullish reversal trend that has been quietly gaining strength.
Bullish Indicators Following Symmetrical Triangle Breakout
Since November 20, when we witnessed a breakout from the triangle pattern, the price action has provided a classic case of bullish behavior. After the breakout, the initial targets set by previous swing highs were promptly surpassed. Following the test at 3.56, we did experience a two-week correction, but thankfully, support was identified around the breakout zone at 3.02 last week. This resilience points to the potential for a strong continuation upward, backed by robust fundamentals.
Monitoring the 20-Day Moving Average for Trends
As we look ahead, natural gas appears poised for further upside. However, it’s crucial to keep an eye on the support at today’s low of 3.18. Should the price dip below this level, it could signal short-term bearishness. Adding another layer of analysis, the 20-Day Moving Average (currently around 3.14) will act as a critical support level. If prices maintain above this moving average, the bullish sentiment remains intact, but failure to hold could prompt a reassessment. For savvy investors, monitoring these indicators is vital to making informed trading decisions.
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