Welcome to Extreme Investor Network, where we provide unique and valuable insights into the stock market, trading, and all things Wall Street. Today, we’re diving into the recent bullish reversal in the natural gas market and what it means for investors.
The bullish reversal that occurred today followed a successful test of support around the short-term 20-Day MA trend indicator, signaling that the bearish correction may be complete. It’s important to note that today’s low of 2.51 was slightly below the 20-Day line, approaching the 50-Day MA and the 61.8% Fibonacci retracement at 2.48. Additionally, a trendline starting from the 2023 peak has been redrawn on the chart, identifying support for today and hinting at a possible pullback bottom.
The 20-Day MA is a crucial near-term trend indicator, and with the successful test of support today, the bullish outlook for natural gas has improved. The big question now is whether the strength seen today can be sustained to potentially challenge the top boundary line of a large symmetrical triangle formation and break out.
In order for a breakout to occur, natural gas will need to rise above the recent high of 2.92. This would indicate a successful breakout attempt from the triangle consolidation formation, with potential pivot levels at 3.02, 3.16, and 3.39. Two rising ABCD patterns highlight initial upside targets at 3.35 and 3.45.
It’s clear that the natural gas market is poised for some exciting movements, and investors should keep a close eye on these key levels and patterns. For a comprehensive look at today’s economic events and how they may impact your trading decisions, be sure to check out our economic calendar.
Stay tuned to Extreme Investor Network for more in-depth analysis and expert insights on the stock market and trading trends. Your success is our priority, and we’re here to help you navigate the ever-changing world of investing with confidence.