Welcome to Extreme Investor Network, where we provide unique and valuable insights into the stock market, trading, and all things Wall Street. Today, we’re focusing on the recent bearish behavior of natural gas and what it means for traders.
The price of natural gas has been on a downward trajectory, with a bearish weekly reversal triggering this week. The week is set to end with a bearish red candlestick pattern and a close near the weekly lows, indicating a potential further downside. The next lower price targets are at the 78.6% Fibonacci retracement level at 1.97 and the 161.8% extended target at 1.95.
However, natural gas found support at 2.00 today, which could lead to a bullish reversal if it continues to hold above this level. A rally above today’s high of 2.07 would signal strength, with the potential for natural gas to head towards the 20-Day Moving Average at 2.11. Recapturing the 20-Day MA would open up the possibility for further upside.
Looking ahead, the key resistance zone to watch is at the recent swing high and last week’s high of 2.30. Additionally, the 200-Day Moving Average and the 50-Day Moving Average are both around 2.30, serving as potential areas of resistance. Recapturing these levels will be essential for natural gas to move higher.
Stay tuned for more updates on the stock market and trading strategies on Extreme Investor Network. And don’t forget to check out our economic calendar for a comprehensive look at today’s economic events. Happy trading!