Bearish trend still dominates
The bearish trend is expected to continue until there are signs that sentiment begins to change. Of course, finding support at this week's low of 2.015 points to the possibility of a bullish reversal, but there is no sign of anything yet. Given the current price pattern, natural gas would need to rise above 2.21 and remain above that level to suggest that its strength is likely to continue for at least a few days. If this happens, the 200-day EMA resistance may be tested as it is also marked by several other indicators. The 200-day line is currently at 2.44.
Above 2.21 shows strength
A rebound above 2.21 would also put Gas well above the internal downtrend line, which is a sign of strength. This would make the higher trend line a target. Notice that the purple 20-day EMA has converged with the internal trendline, and they are defining similar price areas. The 20-day moving average is now at 2.41. This would put the 20-day moving average target just below the 200-day moving average, as it is now. There are several other indicators that can identify price areas similar to the 200-day moving average. Together they form a potential resistance zone of 2.44 to 2.62.
Minor bullish signs emerging on weekly chart
Natural gas is ending its fifth consecutive week of lower lows and lower highs. Furthermore, it is expected to close the week at the highest price relative to this week's trading range. In other words, relative to this week's range, this week's close will be stronger than the previous five weeks. Nothing major, just a small sign that natural gas is getting some support from this week's lows.
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