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Natural Gas Forecast Video for 19.06.23 by Bruce Powers
Natural gas continues to advance towards higher targets as it rises above Thursday’s high. It looks like it should close above it. It will end the week at its highest weekly closing price since late-February.
Also, yesterday’s high was at the 78.6% Fibonacci retracement, which has now been exceeded. The next price target is the swing high at 2.69 from May. Once exceeded to the upside natural gas is on track to hit a target zone of 2.77 to 2.83.
Target Zone Confirmed by Multiple Analysis
That target zone is identified through a variety of analysis. A large ABCD pattern completes at 2.79, the 100-Day EMA is at 2.79, and the 78.6% Fibonacci retracement is at 2.80. If natural gas keeps rising above 2.83 it is likely heading towards a higher target zone from around 2.97 to 3.03.
Highest Weekly Close Since February
As noted, this week should end with the highest weekly closing price since the high week of the first rally off the bottom in February. This is a sign that the developing bottom is making some progress. It is now in its fifth month consolidating near the lows of the downtrend. If June can close above February’s close of 2.75, it will be the highest monthly close in five months. That would provide another bullish sign and confirmation of strength for natural gas.
Prior Rallies Provide Clues
The prior three rallies off the lows of the last several months saw natural gas advance by 53.9% (1), 29.7%, and 32.2%. As of today, the current rally was up 24.2% as of today’s 2.65 high. The current advance reaches will be up 29% at 2.77. Let’s remember that gold has a bullish 12-year basing period on its chart. It broke out to new record highs on May 4, then pulled back to where we are now. The next attempt at new highs could see gold be successful at holding the highs and continuing to advance from there. If this bullish scenario unfolds, current prices for gold may be near the lowest prices that will be seen for some time. So, it deserves to be watched carefully.
For a look at all of today’s economic events, check out our economic calendar.
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