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Tuesday, March 26, 2024 4:59:14 PM
Natural Gas Bullish Weekly Reversal Signals Strong Potential for Higher Targets
By: Bruce Powers | March 26, 2024
• Natural gas shows bullish signs with a reversal above key levels, indicating potential for higher targets, first around 1.95 to 2.01.
A bullish reversal triggered today in natural gas as it got back above the 20-Day MA line (purple) and above the most recent interim swing high of 1.77. Further, a weekly bullish reversal was also triggered as last week’s high of 1.77 was exceeded to the upside. If natural gas can stay above the 20-Day line, currently at 1.77, it has a chance to test higher target levels.
Next Target Zone is 1.95 to 2.01
The next higher target zone looks to be around 1.95 to 2.01. That price zone includes the prior bottom of the downtrend at 1.95, please the 50-Day MA (orange), and the bottom of the descending trend channel (blue dash). In addition, the top of the range is from the most recent swing high on March 5. That high is now the neckline of a potential double bottom bullish reversal pattern. If Monday’s low of 1.59 continues to be the low of the most recent retracement, natural gas should continue to advance from that low.
Rising ABCD Pattern Symmetry at 2.08
A rising ABCD pattern hits its first target at 2.08 and identifies that price level as a key pivot. Either resistance is seen there, as it marks the point of symmetry between the two legs of the pattern, or buyers remain in control and there is a breakout through that price zone. If a breakout occurs, the next higher price zone is 2.17, the bottom boundary of a prior gap.
Of course, an advance above 2.17 puts the price of natural gas into the gap and increases the chance it might eventually fill. The second target from the ABCD pattern is at 2.21. It is derived by applying the 127.2% Fibonacci ratio to the AB leg of the pattern and then that new price distance is applied to the C point to identify a D target.
Potential Double Bottom
As noted above, a potential double bottom has now formed on the chart. A decisive rally above the mid-point at 2.01 triggers a pattern breakout. By taking the height of the pattern in price and adding it to the neckline, a target of 2.50 is calculated from the double bottom.
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By: Bruce Powers | March 26, 2024
• Natural gas shows bullish signs with a reversal above key levels, indicating potential for higher targets, first around 1.95 to 2.01.
A bullish reversal triggered today in natural gas as it got back above the 20-Day MA line (purple) and above the most recent interim swing high of 1.77. Further, a weekly bullish reversal was also triggered as last week’s high of 1.77 was exceeded to the upside. If natural gas can stay above the 20-Day line, currently at 1.77, it has a chance to test higher target levels.
Next Target Zone is 1.95 to 2.01
The next higher target zone looks to be around 1.95 to 2.01. That price zone includes the prior bottom of the downtrend at 1.95, please the 50-Day MA (orange), and the bottom of the descending trend channel (blue dash). In addition, the top of the range is from the most recent swing high on March 5. That high is now the neckline of a potential double bottom bullish reversal pattern. If Monday’s low of 1.59 continues to be the low of the most recent retracement, natural gas should continue to advance from that low.
Rising ABCD Pattern Symmetry at 2.08
A rising ABCD pattern hits its first target at 2.08 and identifies that price level as a key pivot. Either resistance is seen there, as it marks the point of symmetry between the two legs of the pattern, or buyers remain in control and there is a breakout through that price zone. If a breakout occurs, the next higher price zone is 2.17, the bottom boundary of a prior gap.
Of course, an advance above 2.17 puts the price of natural gas into the gap and increases the chance it might eventually fill. The second target from the ABCD pattern is at 2.21. It is derived by applying the 127.2% Fibonacci ratio to the AB leg of the pattern and then that new price distance is applied to the C point to identify a D target.
Potential Double Bottom
As noted above, a potential double bottom has now formed on the chart. A decisive rally above the mid-point at 2.01 triggers a pattern breakout. By taking the height of the pattern in price and adding it to the neckline, a target of 2.50 is calculated from the double bottom.
Read Full Story »»»
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Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
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