At Extreme Investor Network, we keep a close eye on the ever-changing dynamics of the Stock Market, looking for key indicators and trends that could help investors make informed decisions. One interesting trend worth noting is the Fibonacci Confluence that is currently on our radar.
As natural gas prices continue to show bullish momentum, we are closely monitoring the approaching Fibonacci confluence zone, expected to fall between 2.68 and 2.70. The price of natural gas is on an upward trajectory, with the week ending near its highs. In fact, Friday’s trading session saw a wide price range and a strong green candle, indicating an acceleration in bullish momentum.
Looking ahead, the top line of a declining blue dashed trend channel and the 78.6% Fibonacci retracement at 3.00 are key levels to watch for potential price movements. However, caution is warranted as natural gas further extends its rally.
Following a sharp decline from the January 12 swing high of 3.38, natural gas experienced a significant drop of 54.9% in just 25 days, reaching a bottom at 1.52. Since then, we have observed a swing back rally, with prices rising by as much as 65.3% from the subsequent swing low at 1.58.
The relative strength index momentum oscillator (RSI) has also been on the rise, reaching levels not seen since April 2022. This previous peak was followed by a 21% decline to the 38.2% Fibonacci retracement level. If history were to repeat itself, natural gas could potentially reach a retracement level of 2.23 or 2.28, depending on the starting point of the retracement.
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