Welcome to Extreme Investor Network, where we bring you the latest and most valuable insights into the stock market, trading, and all things Wall Street. Today, we’re diving into the world of natural gas and key resistance levels at 2.30.
As natural gas continues to show strength relative to the 200-Day MA, it has hit a roadblock at the 2.30 resistance level. This may indicate a need for a brief pullback or consolidation before attempting a breakout. The narrowing range day suggests a decrease in momentum at this crucial resistance level.
However, there are promising signs of a potential breakout. A decisive move above the 50-Day MA occurred recently, with support likely to be found at this level if reached. Finding support above or at the 50-Day MA would signal strong demand and a positive upward trend. The breakout above the 200-Day line also indicates a constructive development in the market’s advance.
Looking ahead, a breakout above 2.30 could trigger a double bottom pattern, pointing towards a minimum target of 2.72. This aligns closely with the 61.8% Fibonacci retracement level at 2.67, suggesting a resistance range between 2.67 and 2.72. The first higher target zone sits around the 50% retracement at 2.52, offering multiple potential resistance levels to watch.
Beyond technical analysis, the weekly chart also confirms the strength of natural gas. This week’s closing price is set to be near the high of the week’s range, marking the highest weekly closing price in eight weeks. The 20-Week MA, currently at 2.33, will pose a challenge for natural gas, potentially acting as a resistance level. However, the strong upward momentum could see natural gas break through this barrier.
Stay tuned for more updates on natural gas and other market trends on Extreme Investor Network. Don’t forget to check out our economic calendar for a comprehensive look at today’s economic events. Stay informed, stay ahead of the game, and stay connected with Extreme Investor Network.