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As experts in the stock market and trading, we are here to provide you with valuable insights and analysis on the latest market trends. Today, we will be discussing the key parameters for natural gas based on the weekly range.
Weekly Range Defines Key Parameters
Last week saw natural gas trading within a relatively large price range, from 2.075 to 2.29. This range now serves as the key near-term support and resistance levels for the commodity. In particular, the 2.29 price level, along with 2.30, should be closely monitored as they mark the breakout level of the double bottom pattern. Additionally, the 50% retracement is near last week’s low at 2.085, adding further significance to these levels.
Pullback May Test Lower Prices
Despite showing signs of strength last week, natural gas has recently fallen back below the 200-Day MA, currently at 2.255. This pullback could potentially lead to a test of lower prices, especially around the 2.29/2.30 price zone where resistance is expected. The completion of a measured move relative to the most recent upswing further supports this potential resistance level.
Key Near-Term Support at 2.075
Looking ahead, it is crucial for natural gas to maintain key support at 2.075 for a potential upside breakout of the double bottom pattern. A drop below this level could delay any bullish momentum and put the pattern at risk. However, a bullish reversal on the weekly chart last week suggests a likely continuation higher, unless the 2.075 level is decisively broken to the downside.
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