Natural Gas Price Analysis: Bulls headed to test prior support, focus is on the gap thereafter
- Natural Gas is heading towards a 38.2% Fibonacci level.
- A downside continuation to close the gap is eyed.
Natural Gas is playing out in a long drawn-out phase of what could be an accumulation albeit within a downtrend. The commodity is basing, for now, on the front side of the bearish trend but is sliding out of the micro bear trend which gives a meanwhile bias to the upside on the charts. The following illustrates this on the daily and 4-hour time frames.
Nat Gas daily charts
Zoomed in on the daily chart, we can see the accumulation taking place following the breakout of the downtrend, and then horizontal structure around 2.327. The price is meeting resistance but that is not to say there will not be an upside continuation after a restest of support. There is a gap to 2.282 that could be filled in due course.
Nat Gas H4 chart
Zooming down to the 4-hour chart, we can see that the price is heading toward a 38.2% Fibonacci level and the 50% thereafter aligns with prior support, so this could act as resistance. Subsequently, a downside continuation to close the gap is a reasonable thesis for the sessions ahead.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
