May Rally Further As Support Level Holds


Natural Gas Technical Forecast

  • Bears ease up-selling pressure
  • Will bulls take charge?

Natural Gas Price – Indecisive Traders

On Friday, natural gas declined to a two-week low at $1.772 then rallied after and closed the weekly candlestick with a Doji pattern signaling the market’s indecision at this stage.

Alongside that, the Relative Strength Index (RSI) remained flat below 50 highlighting a paused bearish momentum.

Nat-Gas DAILY Price CHART (Nov 2, 2018 – June 5, 2020) Zoomed Out

Natural gas daily price chart 05-06-20 zoomed out

Traits of Successful Traders

Traits of Successful Traders

Recommended by Mahmoud Alkudsi

Traits of Successful Traders

Natural Gas DAILY Price CHART (March 10 – June 5, 2020) Zoomed IN

Natural gas daily price chart 05-06-20 zoomed in

On May 29, the price rebounded from the uptrend line originated from the April 16 low at $1,653. This week, Natural gas remained trading above the aforementioned line reflecting bear’s hesitation. Yesterday, the market climbed to the current trading zone $1,850 – $2,050 yet closed below the 50-day moving average.

Another close above the low end of the trading zone may encourage bulls to push towards the high end of it. A further close above this level may extend the rally towards $2,139.

On the flip-side, any close below the low end of the zone signals a possible fall towards $1,655. A further close below that level could send the market even lower towards $1,430.

That said, the daily and weekly support and resistance levels marked on the daily chart should be kept in focus.

Building Confidence in Trading

Building Confidence in Trading

Recommended by Mahmoud Alkudsi

Building Confidence in Trading

Natural Gas price Four-Hour PRICE CHART (May 25 – June 5, 2020)

natural gas four hour price chart 05-06-20

On Monday, the price rallied above the downtrend line originated from the May 27 high at $1,979 and generated a bullish signal. Yesterday, the price respected the uptrend line originated from the June 1 low at $1,760 and provided another bullish signal.

Thus, a break above $1,927 could trigger a rally towards $2,040 in turn, a break in the other direction i.e. below $1,822 may send natural gas back towards the June 1 low mentioned above. Nonetheless, the daily support and resistance underlined on the four-hour chart should be watched closely.

Written By: Mahmoud Alkudsi, Market Analyst

Please feel free to contact me on Twitter: @Malkudsi





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here