Markets

Autochartist - Daily Commodities Update: Natural Gas

Natural Gas futures moved higher in Wednesday's session to close above $4.00 per million BTU, in what may be a set-up for a breakout trade. The push higher carried the price above resistance created by a Falling Wedge chart pattern, illustrated here on the longer term 240-minute time frame.

This pattern shows a very clear congestion zone with consecutively lower swing highs as the market settled below the $4.00 level. This price action formed the top of the wedge, which is well developed and scores a 7-bar rating on overall quality. Tuesday's move above the recent tops executed the breakout on strong momentum, followed by a successful retest of the trend line and a rally upwards towards the forecast target.

The projected move higher from here calls for a minimum price of $4.085 with the upper end of the range marked at $4.213 to exceed the previous meaningful rally which occurred at the end of August. The successful completion of this breakout pattern would place the market on solid footing to begin a seasonal trend higher into the winter demand season.

For further information on this and other Autochartist products, visit our website at www.autochartist.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos