Bullish Breakout Gains MomentumNatural gas extended its bullish breakout above the 200-day moving average to a 13-week high of $3.395 on Thursday, with the move seemingly supported by lean storage expectations as well as the technical recovery.
Buyers remain in control at the time of writing, with trading continuing in the upper third of the day’s range.
In addition to the surge in buying pressure indicated by a long bullish candle, strength was shown by the recovery of the lower swing high of $3.245 from July.
Since that swing high marked the beginning of a bearish correction triggered by a break below key trend support, including the 50-day moving average, reclaiming that level is a sign of strength.
When combined with this week’s sustained reclaim of the 200-day moving average, the intermediate-term bullish outlook for natural gas is improving and supports the potential for further upside.
Bullish Breakout Gains Momentum
Natural gas extended its bullish breakout above the 200-day moving average to a 13-week high of $3.395 on Thursday, with the move seemingly supported by lean storage expectations as well as the technical recovery. Buyers remain in control at the time of writing, with trading continuing in the upper third of the day’s range. In addition to the surge in buying pressure indicated by a long bullish candle, strength was shown by the recovery of the lower swing high of $3.245 from July.
Since that swing high marked the beginning of a bearish correction triggered by a break below key trend support, including the 50-day moving average, reclaiming that level is a sign of strength. When combined with this week’s sustained reclaim of the 200-day moving average, the intermediate-term bullish outlook for natural gas is improving and supports the potential for further upside.
