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 diving into the strength indicated by the 20-Day MA rising above the 200-Day MA in the natural gas market.
Today’s low in natural gas is showing a higher low compared to the recent swing low, signaling a minor sign of strength. The short-term 20-Day MA has also crossed above the long-term 200-Day MA, further indicating strength in the market. However, potential support around the moving averages will be critical for the sustainability of the rally, with the 200-Day line at 2.455 and the 20-Day line at 2.47.
Key support is seen at 2.46, with a decisive decline below this level potentially triggering a deeper retracement and a double top scenario. If a breakdown occurs, we may see a test of support around the 50-Day MA at 2.06, with higher price areas to watch for support at 2.25 and 2.10.
Looking ahead, further consolidation is a possibility for natural gas above the 200-Day MA, with initial resistance around the blue dashed downtrend line. Keeping an eye on the weekly chart is crucial, as last week and this week have shown bearish shooting star candlestick patterns. Weekly lows will be key to watch for any decisive drops in price.
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