Are you keeping a close eye on the stock market and looking for potential trading opportunities? If so, you’ll want to pay attention to the latest analysis on natural gas prices. In this blog post, we’ll delve into the key support levels and potential price movements that could impact your trading decisions.
Bearish Continuation Below 2.63
A decisive decline below today’s low will trigger a continuation of the bearish retracement for natural gas prices. Keep an eye on two primary potential support zones. The first support zone ranges from 2.58 to 2.54, while the second starts at the 61.8% Fibonacci retracement level at 2.48 and extends down to the 50-Day MA at 2.46. The first price zone includes a prior interim swing high, the 50% retracement level at 2.56, and the purple 20-Day MA.
Another Test of Support at 50-Day MA May Occur
Recent price action indicates a failed test of support at the 50-Day MA, with natural gas prices falling below the line before bouncing back above it. The current decline may lead to another test of support at the 50-Day MA, potentially resulting in a bullish reversal. While moving averages offer some guidance, natural gas is currently trading within a consolidation phase in the form of a large symmetrical triangle pattern. Despite this, the recent support at the 200-Day MA and the 50-Day crossing above the 200-Day MA have provided useful insights.
Internal Uptrend to Provide Insights
Pay close attention to the behavior around the internal uptrend line connecting the most recent swing low. If this trendline fails to hold as support, the 200-Day MA at 2.23 becomes the next target. A break below the 200-Day MA could result in a test of the trendline, potentially impacting the bullish outlook for natural gas prices.
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