Natural Gas Forecast Video for 01.05.23 by Bruce Powers
Natural gas breaks above the previous trend highs to trigger a continuation of the uptrend of the developing minor uptrend. This uptrend comes from the 1.95 low trend from two weeks ago. A failed breakout occurred earlier this week. Today’s breakout, however, seems to point to stronger bullish momentum as natural gas is on course to close above the most recent high around 2.39, the highest daily close in 29 days of trading. sotck exchange. Which he couldn’t do during the escape attempt earlier in the week. This is a sign of strength that could be a precursor to further increases in natural gas.
A daily close above the early week high at 2.41 would provide another small piece of evidence of underlying natural gas strength. At the time of this writing, he is close to achieving this but is not confirmed until the end of the day.
Completion of the first target of the ABCD model
The next main target area is around 2.58 to 2.62. At this point, the ABCD pattern on the chart will reach its original target, and a 61.8% Fibonacci retracement will end at the top of this range. Certainly, natural gas can continue from here with higher targets indicated on the chart. The most important being the completion of a movement measured at 3.00.
What to watch out for next
Another bullish sign for natural gas would be a weekly close in the upper 25% of the week’s range or in the upper 50%. So far it appears to be closing above 50% of the range. A stronger close would be seen in the upper 25% of the week’s range.
This week’s low at 2.17 is key short-term support. A drop below this low disrupts the integrity of the upside price structure and indicates greater uncertainty as natural gas tries to figure out what to do next.
Is additional consolidation possible?
Finally, the consolidation of the expanding triangle at the bottom of the trend could continue to move within the limits of the pattern. Still, you can see that natural gas attempted to break out of the pattern today as it peaked above the pattern’s upper border trendline. Such an upside break, however, is not confirmed until there is a daily close above the top line.
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This article originally appeared on FX Empire
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