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Friday, June 07, 2024 4:54:11 PM
Natural Gas Price Forecast: Bull Breakouts Signal Strong Uptrend
By: Bruce Powers | June 7, 2024
• Following a new daily high close in the uptrend, natural gas surged on Friday, confirming a bull pennant breakout and triggering a trendline break.
Following a new daily high close for the uptrend yesterday, natural gas took off on Friday, confirming a bull pennant breakout and triggering a trendline break. Moreover, a bull trend continuation signal triggered above 2.92, on the way to the day’s high and a weekly high of 2.97. However, the market continues to trade near the highs of the day at the time of this writing, and it could reach a higher price level before the weekend.
Unless there is a pullback before today’s close, it is on track to close strong, in the top quarter of the day’s range and possibly above the prior trend high at 2.92. The stronger the close, the more likely it should be able sustain upward momentum.
Dual Breakout: Bull Pennant, Long-term Trendline
Today’s breakout is the latest technical clue that the uptrend in natural gas is improving and becoming more sustainable. Although there were two attempted breakouts of a bull pennant trend continuation pattern recently most of the structure of the pattern was retained. Given today’s strong momentum through a clear breakout level indicates that the market has recognized the change. The downtrend has defined dynamic resistance for the full trend beginning from the 2023 peak at 3.64. That peak is now at risk of being broken eventually if the uptrend continues to strengthen.
Improving Technical Clues
Keep in mind that today’s high puts the price of natural gas up by 95% from the February trend low. That is a healthy swing historically in a relatively short amount of time. Nevertheless, support was successfully tested near the 20-Day MA recently, indicating that the 20-Day line is a good near-term line to watch for the current trend. Also, today’s rise moves natural gas further away from the long-term 200-Day MA, a sign of long-term strength.
Pennant Target Above 2023 High
The measuring objective from the bull pennant offers an initial target of 3.78. That price target is above the 2023 high of 3.64. On the way up it must contend with possible resistance around the 78.6% Fibonacci retracement at 2.99 and the prior interim swing high resistance at 3.02. An interim prior swing high is at 3.39. The weekly chart also contains bullish clues after today as this week’s candlestick pattern should negate the prior two week’s bearish candles.
Read Full Story »»»
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By: Bruce Powers | June 7, 2024
• Following a new daily high close in the uptrend, natural gas surged on Friday, confirming a bull pennant breakout and triggering a trendline break.
Following a new daily high close for the uptrend yesterday, natural gas took off on Friday, confirming a bull pennant breakout and triggering a trendline break. Moreover, a bull trend continuation signal triggered above 2.92, on the way to the day’s high and a weekly high of 2.97. However, the market continues to trade near the highs of the day at the time of this writing, and it could reach a higher price level before the weekend.
Unless there is a pullback before today’s close, it is on track to close strong, in the top quarter of the day’s range and possibly above the prior trend high at 2.92. The stronger the close, the more likely it should be able sustain upward momentum.
Dual Breakout: Bull Pennant, Long-term Trendline
Today’s breakout is the latest technical clue that the uptrend in natural gas is improving and becoming more sustainable. Although there were two attempted breakouts of a bull pennant trend continuation pattern recently most of the structure of the pattern was retained. Given today’s strong momentum through a clear breakout level indicates that the market has recognized the change. The downtrend has defined dynamic resistance for the full trend beginning from the 2023 peak at 3.64. That peak is now at risk of being broken eventually if the uptrend continues to strengthen.
Improving Technical Clues
Keep in mind that today’s high puts the price of natural gas up by 95% from the February trend low. That is a healthy swing historically in a relatively short amount of time. Nevertheless, support was successfully tested near the 20-Day MA recently, indicating that the 20-Day line is a good near-term line to watch for the current trend. Also, today’s rise moves natural gas further away from the long-term 200-Day MA, a sign of long-term strength.
Pennant Target Above 2023 High
The measuring objective from the bull pennant offers an initial target of 3.78. That price target is above the 2023 high of 3.64. On the way up it must contend with possible resistance around the 78.6% Fibonacci retracement at 2.99 and the prior interim swing high resistance at 3.02. An interim prior swing high is at 3.39. The weekly chart also contains bullish clues after today as this week’s candlestick pattern should negate the prior two week’s bearish candles.
Read Full Story »»»
DiscoverGold
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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