Category: Forex News, News

Natural Gas Price Forecast: Faced Resistance After Strong Opening Surge

Failure Following Strong Opening is Bearish Behavior

Such a bearish reaction to a strong opening is not bullish behavior. It creates further uncertainty as to whether the uptrend may have more upside to go before a deeper retracement, or if today creates a second high that leads to a bearish continuation. The 200-Day MA at 2.46, along with the recent swing low of 2.475 are the near-term price levels to watch for support. However, a retest of support around the 200-Day line could lead to a failure and a deeper retracement that targets lower price levels.

Correction Can Include a Retracement and/or Consolidation

The correction, if it does continue, could take place with a deeper retracement or consolidation. As of today, a possible consolidation range would have a high of 2.92 and a low of 2.475. But since the 200-Day line is so close to the recent swing low, they can be watched together. Notice what is happening with the purple 20-Day MA. It is rising and heading towards the 200-Day line. If natural gas further consolidates above the 200-Day line, the 20-Day line may continue to rise. It is leaning towards a possible crossing above the 200-Day line, which would be bullish overall and a sign that demand is improving. The 20-Day MA is now a match with the 38.2% Fibonacci retracement at 2.41.

20-Day MA is Current Trend Support to Watch

For the current advance the 20-Day line is the key trend support line to watch during weakness. If it remains a support boundary the chance for a continuation higher in the price of natural gas remains. Alternatively, a drop below the line increases the chance to a test of support at lower prices. The 50-Day MA at 2.03 being one of the lower price levels. That should be the maximum of a retracement, but certainly support can be seen higher.

For a look at all of today’s economic events, check out our economic calendar.


Source link

Discover more from BIPNs

Subscribe to get the latest posts sent to your email.

Written by : Editorial team of BIPNs

Main team of content of bipns.com. Any type of content should be approved by us.

Share this article:

Share your opinion. And leave a reply within the comments from below.


Discover more from BIPNs

Subscribe to get the latest posts sent to your email.