Higher Target Zones

The next higher target zone runs from 2.52 to 2.54 and includes the 50% retracement and the completion of a rising ABCD, respectively. Given the improvement in bullish momentum this next target zone could be reached quickly. Notice the wide range yesterday with a close near the highs, and a similar one-day dynamic today. Keep an eye on the rise in the 20-Day MA as it is close to crossing above the slower moving 200-Day MA, now at 2.23. That would provide an additional sign that demand is improving.

Further up is a target zone from 2.65 to 2.67. It correlates with an old trendline rising from the April 2023 swing low. The 2.65 price level is the 127.2% extended target for the rising ABCD pattern that is on the chart, and 2.67 is the completion of a 61.8% Fibonacci retracement.

Bull Breakout on Daily, Weekly, and Monthly Charts

Natural gas broke out of a double pattern on a move above 2.30 last Wednesday, and it is now showing signs that it is ready to follow through to the upside. The advance also triggered a breakout on the higher time frame monthly chart. This is significant as all higher time frames (daily, weekly, monthly) are bullish. The next monthly target is 2.60, the peak from July.

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