Welcome to Extreme Investor Network, where we bring you cutting-edge analysis and insights into the world of the Stock Market, trading, and Wall Street. Today, we take a closer look at the natural gas market and what the future may hold for this commodity.
A recent bullish reversal in natural gas prices has sparked a potential test of the 20-Day MA at 2.60. After bouncing off a bottom of 2.21 and successfully testing support around the 200-Day MA, natural gas has seen a counter-trend rally that surpassed the 38.2% Fibonacci retracement level. The key now is whether natural gas can break above the 20-Day MA at 2.60 and surpass the 50% retracement level at 2.615 in order to continue its upward trajectory.
Despite a recent correction, signs of strength in natural gas prices have been retained. The 20-Day MA has remained above both the 50-Day and 200-Day lines, indicating underlying demand and potential for further highs. The 50-Day MA has also remained in an uptrend, suggesting continued strength in the intermediate trend. With the price behavior showing improving demand and the potential for a breakout to the upside in a large symmetrical triangle consolidation pattern, the future looks promising for natural gas.
With the slope of the trend line increasing and higher swing lows being established since the February bottom, there is clear evidence of improving demand for natural gas. The next move for natural gas is either to continue progressing within the consolidation formation or to break out to the upside. All eyes are on natural gas as it approaches a potential breakout point.
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