End the week in a bearish position

Today’s bearish behavior in natural gas price increases the likelihood that it will sink to lower price levels before the correction is complete. In addition, a bearish weekly reversal was triggered this week on the weekly chart, and the week is expected to end with a bearish red candlestick pattern and a close near the weekly low. This will set a bearish signal below this week’s low. The next lower price objective is the 78.6% Fibonacci retracement at 1.97. Slightly lower is the 161.8% extended target for a slightly falling ABCD pattern at 1.95.

A rally above today’s high will show strength

Nonetheless, natural gas found support at 2.00 today and could continue to hold above that price level, resulting in a bullish trend reversal. A move above today’s high of 2.07 would be a sign of strength, with natural gas first heading toward the 20-day MA, currently at 2.11. If the 20-day line can be reclaimed, natural gas has a chance to continue higher.

Resistance at moving averages

The next key resistance zone that would need to be reclaimed is the recent swing high and last week’s high of 2.30. However, there are two moving averages nearby that also need to be considered. The 200-day MA is also at 2.30 and the 50-day MA is at 2.305. Therefore, reclaiming the 2.30 high and the moving averages will enable Natural Gas to continue higher. Until then, they can continue to identify an area of ​​potential resistance.

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