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Natural Gas Price Forecast: Bullish Momentum in Natural Gas Continues

FXEmpire.com -

Natural gas continued its ascent on Monday, triggering a bullish trend continuation signal on a rally above last week’s high of 1.92. The high of the day was 1.99 at the time of this writing. That put natural gas above the previous trend lows from February 2023 at 1.97 and April 14 at 1.95, which was a potential resistance area. A daily close above 1.97 would confirm strength. However, it is starting to look like natural gas may not be able to close above 1.97 today, as an intraday pullback has taken it below the 50% level of the day’s trading range.

Next ABCD Target at 2.02

The 127.2% Fibonacci extended target for a rising ABCD was reached today at 1.92 and quickly exceeded. Subsequently, the 161.8% Fibonacci extended ABCD target is at 2.02. And that target is a little below the 38.2% Fibonacci extension at 2.04. Together, they represent the next higher potential resistance zone.

Traders Likely to Engage on Weakness

There was a quick one-day pullback on Friday following last week’s high of 1.92. Today, there was a clear bullish follow-through. Such a quick bullish continuation after only a one-day pullback is a sign of underlying strength/demand. It may indicate that this bounce/rally is not yet complete. Therefore, traders are likely to use short-term weakness as an opportunity to add or enter positions.

An advance above today’s high signals a bullish continuation of the trend. As noted above, the next higher target zone would then start at 2.02. If the 2.04 price level is exceeded to the upside natural gas should next head towards the end of a gap around 2.17, followed by 2.23 and 2.31, assuming it can keep rising.

Weekly Bullish Signal

It is important here to keep in mind the weekly time frame chart. Last week a bullish reversal triggered and was confirmed by last week’s close above 1.79. Today’s price action triggered a continuation of that bullish reversal on a rally above last week’s high of 1.92. A daily close above 1.92 will confirm strength and then further still if this week’s ends above that price level.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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

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