Are you ready to take your trading game to the next level? At Extreme Investor Network, we provide expert analysis and insights into the stock market, trading strategies, and all things Wall Street. Today, we’re diving into the potential for a breakout in the market and what to watch out for in the coming days.
A breakout above the top line of a consolidation pattern can signal a bullish move in the market. However, it’s crucial to pay attention to subsequent price behavior to avoid falling for a false breakout. Keep an eye on the most recent swing high at 3.02, as a rally above this level would confirm strength in the market. A daily close above the swing high is necessary to complete the breakout and confirm a bullish trend.
On the flip side, a pullback may be in the cards if resistance is strong. Look for signs of weakness if the price drops below key support levels, such as today’s low or yesterday’s low. The 38.2% Fibonacci retracement level at 2.65 could act as initial support, followed by a more significant support zone around 2.58 to 2.56. Monitoring price behavior around the 20-Day MA can help identify support levels in the near-term trend.
If natural gas breaks below the 20-Day MA, keep an eye on the 50-Day MA at 2.44 as a potential target for the price to move towards. Additionally, watch out for the 61.8% Fibonacci retracement level at 2.48 as another key support level.
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