Natural Gas Prices dip to Test Major Support Following Significant Decline

Are you keeping an eye on the natural gas market? Here at Extreme Investor Network, we have the latest insights to help you navigate the ups and downs of trading. Let’s take a closer look at the current support levels and potential bounce opportunities for natural gas.

Lower Support Starts Around 1.92

As natural gas prices continue to fluctuate, it’s crucial to pay attention to key support levels. If the 2.02 support zone fails to hold, a drop below 2.00 could signal a move towards the 78.6% Fibonacci retracement at 1.92. This price point gains significance as it aligns with the gap-up support level from late-April at 1.91.

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Natural gas experienced a significant drop recently, with a decrease of up to 0.16 cents or 7.5% in a single day. The wide price range and full-body red candle suggest weakness in the market, potentially leading to further downside.

Current Support May Lead to a Bounce

Despite the recent selloff, there is a possibility that the 2.00 support level attracts buyers and triggers a bounce. In some cases, a sharp decline towards the end of a downtrend can indicate capitulation among traders, paving the way for a potential rebound. Keep a close watch on intraday price patterns for signs of a bullish reversal from key support zones.

Breakout Above Trendline Give First Sign of Strength

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To gauge the strength of natural gas prices, look for a breakout above today’s high of 2.21 on the daily chart. While trends can shift quickly, it’s essential to confirm any trendline breaks with additional indicators of strength. Keep an eye out for emerging price levels and intraday patterns that may signal a bullish upturn in the market.

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