Welcome to Extreme Investor Network, where we provide unique insights and information to help you navigate the stock market with confidence. Today, we’re diving into the world of natural gas trading and looking at potential areas of interest for buyers.
Buyers showed interest as the market reached its lows near the support zone of 2.23 to 2.17. A strong daily close and key reversal day indicate that buyers are stepping up, potentially leading to a bullish retracement to test resistance levels. Keeping an eye on the downtrend price structure following a bounce will be crucial to see if natural gas will test the lower support zone.
One key resistance zone to watch is from 2.45 to 2.475, with the 200-Day MA currently at 2.46. The convergence of the moving average with previous swing lows and highs adds significance to this zone. Breaking above 2.45 would show strength and could lead to a challenge of the 200-Day MA. In fact, a daily close above this level would confirm strength and open the door to a continuation higher towards the 50-Day MA at 2.56 and the 20-Day MA at 2.59.
Looking ahead, a higher target range from 2.56 to 2.59 is in focus as the 50-Day MA rises and approaches the 20-Day MA. The convergence of the 20-Day MA with the 38.2% Fibonacci retracement at 2.60 adds additional interest, as Fibonacci analysis often sees retracements to at least the 38.2% level. By incorporating a downtrend line for the current decline, traders can gain additional guidance during an advance.
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