Welcome to Extreme Investor Network, where we provide unique insights and analysis on the Stock Market, trading, and all things Wall Street. Today, we’re diving into the exciting world of natural gas trading and discussing some key technical indicators that point to potential bullish opportunities.
One important indicator to watch is the successful retest of support around the 20-Day MA, with a breakout attempt around the 3.02 high on the horizon. This retest followed the first successful test on November 4, indicating potential bullish momentum building up. A daily close above 3.02 would confirm a breakout and open up the possibility of testing higher targets.
Looking at near-term symmetry, we see that the first target is the swing high from August at 3.16. However, with strong market response potential, surpassing this level should be easily achievable. A breakout of a large symmetrical triangle pattern, as well as continuation of the rising trend from August, could be triggered by a sustained rally above 3.02.
If the 3.16 high is exceeded, a small rising ABCD pattern points to a target of 3.22. But the real prize could be in the range of 3.35 to 3.45, where Fibonacci projections and price structure converge.
While the technical indicators are pointing to potential bullish opportunities, it’s important to watch the behavior following a breakout. This will provide clues on the strength or weakness of demand, helping determine the sustainability of the uptrend. Keep an eye on how the price of natural gas reacts following a breakout, as a failed breakout is always a possibility.
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