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Natural Gas Forecast Video for 28.08.23 by Bruce Powers
Yesterday, natural gas showed signs of a possible bottom after hitting a low of 2.435. That is the bottom of the retracement and followed an undercut of the recent swing low at 2.46. However, natural gas was able to bounce off the 2.435 price zone to close green for the day and back above the 2.46 swing low. This is early short-term bullish behavior. Further confirmation of strength is needed for signs natural gas may be getting ready to align again with the underlying bullish trend.
Natural Gas Pauses to Trade Inside Day
Following yesterday’s bounce natural gas takes a rest and trades inside day on Friday. The close of 2.52 yesterday was not as strong as it could have been given that natural gas was sitting right up against resistance of the uptrend line. Nevertheless, today it looks like it will be making up for that by preparing to close above the line. Further, there is a second line nearby, a downtrend line as well. Today’s price action occurs at the intersection of the two lines, the uptrend and internal downtrend lines. A daily close above the intersection would be a stronger indication than a close below the intersection. The approximate price at the intersection is 2.53.
Breakout Above 2.55 Signifies Bullish Momentum
Going into next week, natural gas will start with an inside day. A breakout of an inside day is a sign of strength and increases the chance that natural gas will continue to strengthen in the near-term. At the time of this writing, the high for the day and signal price is 2.55. Once triggered, natural gas next needs to advance above yesterday’s high of 2.565. That is then followed by a range of possible support and a critical price zone to break through before it can trend higher. For simplicity, the range would be from the 34-Day EMA at 2.615 to the eight-day high at 2.674. A move above the eight-day high puts natural gas back above the 34-Day line as well as the internal downtrend line marking dynamic resistance of the retracement.
For a look at all of today’s economic events, check out our economic calendar.
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