Dynamic Support Strengthens Below PriceHowever, there is potentially significant dynamic support currently showing above that level near $3.03, as represented by the rising 50-day moving average.
Therefore, the 50-day moving average presents the more significant potential dynamic support zone.
As it has risen recently above the high swing low of $3.02, it becomes more significant, since it shows support sitting just below the price structure at that swing low.
Breakout Scenario Still in PlayGiven the failure to fall through support during recent tests, an upside continuation must also be considered.
If you’d like to know more about how to trade natural gas, please visit our educational area.
Dynamic Support Strengthens Below Price
However, there is potentially significant dynamic support currently showing above that level near $3.03, as represented by the rising 50-day moving average. That average was reclaimed in mid-May and subsequently successfully tested as support during a pullback. Therefore, the 50-day moving average presents the more significant potential dynamic support zone. As it has risen recently above the high swing low of $3.02, it becomes more significant, since it shows support sitting just below the price structure at that swing low.
Breakout Scenario Still in Play
Given the failure to fall through support during recent tests, an upside continuation must also be considered. Strong potential resistance is marked near the 200-day moving average at $3.42, and if the prior trend high of $3.40 is exceeded, that indicator becomes the next upside target. However, if the 200-day moving average can be reclaimed, followed by a reversal signal above the lower swing high of $3.49 from March, there would be increased potential for the trend to continue higher.
If you’d like to know more about how to trade natural gas, please visit our educational area.
