Welcome to Extreme Investor Network, where we provide unique insights and analysis on all things stock market, trading, and Wall Street. Today, we are diving into the significance of the 200-Day MA in marking a key price level for natural gas.
The 200-Day MA was reclaimed on September 11, sparking a sharp rally to the 3.02 swing high and forming a large symmetrical triangle pattern. The current decline is now testing support around the 200-Day MA, with natural gas down by as much as 25.4% from the recent high. Sellers seem to be in control, leading to a potential break below the 200-Day line.
If the 200-Day line is breached, the next lower target is the 78.6% retracement at 1.92. Additionally, the internal uptrend line of the triangle pattern may come into play as well. Resistance at the top of the pattern suggests a full swing to test support at the lower boundary could be on the horizon.
Despite being within a consolidation pattern, the 200-Day MA has proven to be a significant support level, particularly after the September 11 breakout. The wide price swings within the triangle pattern continue to exert influence, with bullish momentum strengthening after the initial test of support on September 19.
Stay informed with all the latest economic events by checking out our economic calendar. For more expert analysis and insights on the stock market, trading strategies, and more, make sure to visit Extreme Investor Network regularly. Happy trading!