Welcome to Extreme Investor Network, where we provide expert insights and analysis on the stock market, trading, and all things Wall Street. Today, we’re diving into the current state of natural gas prices and the potential downward pressure that remains in the market.
The downtrend price structure in natural gas is still intact, indicating that a decline to test the next lower support zone is a real possibility. Keep an eye out for potential resistance around the 200-Day MA, which is currently at 2.47. This long-term moving average has historically acted as a significant level of resistance, especially as the price of natural gas has continued to fall post an initial decline below the line last Tuesday.
Looking ahead, the lower price zone begins at 2.23, extending down to 2.17. This area includes a prior swing low from December, a resistance level from early February, a 61.8% Fibonacci retracement at 2.18, and an extended falling ABCD pattern completing at 2.20. With four key indicators pointing to the 2.23 to 2.17 price zone as potential support, it’s a crucial area to watch for traders.
On the weekly chart, the 20-Week MA aligns with the price zone at 2.20, adding further significance to this level. Additionally, the 2.17 price level shows a harmonic relationship with the price drop seen in the first AB leg of the decline, indicating a possible turning point in the market.
In times like these, when multiple indicators converge on a specific price range, it’s essential to pay close attention. While natural gas may rally from its current lows, there is a strong possibility of encountering resistance that could push prices back down towards the 2.23 support area.
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