Any Rally Faces Falling ResistanceIf a bounce does follow Monday’s low, the upper range of the expanding triangle becomes a potential target.
However, resistance was recently confirmed at a high of $2.98 near the 20-day moving average.
$2.65 Trend Low Moves into FocusThe next downside target is the 88.6% Fibonacci retracement at $2.74, followed by the recent trend low of $2.65.
Unless natural gas shows a clear shift in bearish character, the expanding consolidation pattern and weakening price action continue to favor a test of lower levels.
If you’d like to know more about how to trade natural gas, please visit our educational area.
Any Rally Faces Falling Resistance
If a bounce does follow Monday’s low, the upper range of the expanding triangle becomes a potential target. However, resistance was recently confirmed at a high of $2.98 near the 20-day moving average. That average, at $2.97, is falling and therefore may continue to limit upside potential during any advance. The recent rejection at the 20-day moving average also confirms building bearish momentum, which could accelerate following that rejection.
$2.65 Trend Low Moves into Focus
The next downside target is the 88.6% Fibonacci retracement at $2.74, followed by the recent trend low of $2.65. The bearish signs noted above put that low at risk of eventually being broken. Unless natural gas shows a clear shift in bearish character, the expanding consolidation pattern and weakening price action continue to favor a test of lower levels.
If you’d like to know more about how to trade natural gas, please visit our educational area.
