Upside Weekly Breakout Signaled Above 2.24 Another way to look at the current situation in natural gas is on the weekly chart. Here, there is a bullis
Upside Weekly Breakout Signaled Above 2.24
Another way to look at the current situation in natural gas is on the weekly chart. Here, there is a bullish hammer candlestick pattern from last week. So far, this week’s price action is contained within the range of last week, representing consolidation on a weekly basis. An upside weekly breakout is indicated on a move above last week’s high of 2.24, and then confirmed on a daily close above that high. If natural gas ends this week as an inside week, then next weekly the high of this week may provide a signal. But first this week needs to end. The daily price levels noted in the first paragraph can also be taken into consideration if so desired, in which case a move above 2.26 would be used for a bullish reversal signal.
If an upside breakout does eventually occur, the Fibonacci retracement levels at 2.51, 2.63, and 2.81, can be watched as potential near-term targets. However, the more significant targets would be higher.
Chance for Aggressive Rally Post Bullish Reversal Signal
The first leg up off the bottom of the trend in late-February saw natural gas advance by 53.9% in only seven days. A similar enthusiastic rally could be seen again off the 2.00 low. So far it has not happened but once a bullish reversal signal is indicated the chance for an aggressive rally improves. This is not a prediction, just a possibility to be prepared for. An ABCD pattern would be in play following a bullish reversal with a target of 3.06.
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