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50% Retracement of Small Upswing
Today’s bearish pullback following the $4.48 high has almost completed a 50% retracement of an internal upswing. The 50% level is at $4.02 and the low for the day so far was $4.03. Nonetheless, that is a price level measuring a shorter internal upswing while the first retracement level from the full advance is at $3.91. That price level is the convergence of both the 38.2% Fibonacci retracement of the full advance and the 61.8% retracement of the internal upswing. Therefore, baring a breakout to new highs before a pullback, that price level is the first lower target.
Lower Price Levels
Subsequently, the next lower confluence potential support zone is identified from $3.75 to $3.73. It consists of a 78.6% retracement level and a 50% retracement level, respectively. Nonetheless, both the 20-Day MA and 50-Day MAs were recently reclaimed during the recent rise. There has not yet been a test of support around those moving averages other than on one-day.
Therefore, if a deeper pullback occurs, they would be obvious potential targets. Keep in mind that the price levels represented are dynamic. Currently, the 50-Day line is at $3.62 and the 20-Day is at $2.57. Moreover, there is also a minor swing low (begins the internal upswing Fibonacci measurement) and 61.8% Fibonacci retracement at $3.56 and $3.55, respectively.
Bull Continuation Above $4.48
Since the top channel line was successfully tested as resistance today, it may also mark a point of potential resistance in the future. Nonetheless, a decisive breakout above today’s high has natural gas heading towards, $4.56, $4.70/$4.72, followed by a 38.2% Fibonacci retracement for the full downtrend that began from the 2022 high at $10.03.
For a look at all of today’s economic events, check out our economic calendar.
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