Analyzing Natural Gas Trends: Anticipating Bullish Continuation

Natural Gas Forecast Video for 30.08.23 by Bruce Powers

Natural gas is set to close with a narrow range doji candlestick pattern near the highs of the developing advance. Both the internal downtrend line and 34-Day EMA (2.62) were tested successfully as support as natural gas bounced once testing the lines. This is bullish short-term behavior and today should see a daily close above each line further confirming strength. In addition, today’s close will likely be above the 2.67 price level mentioned last week. That was the high of a range that natural gas needed to exceed to open the door to higher prices.

A Breakout of Today’s 2.70 High Triggers Bullish Advance

A decisive breakout above today’s high of 2.70 triggers a bullish continuation of the advance. Once that happens there are three price levels to watch for signs of possible resistance, or strength if price continues through the price level. Each is both a daily swing high and weekly high. Each is marked with a right extended horizontal purple dotted line. The first is 2.79. It is the least significant of the three price levels as it is marked from price activity prior to the recent 3.02 swing high from August 9. Subsequently, there is the 2.86 to 2.88 price zone, which includes the June swing high along with the recent minor swing high from August 15.

Rise Above 3.02 Swing High Targeted

The more significant level is the most recent swing high of 3.02. A daily close above that level triggers a bull trend continuation of the uptrend starting from the April 14 swing low. That high to be exceeded before natural gas has a chance of reaching its higher target zone from around 3.19 to 3.31. The 200-Day EMA is included in the range at 3.30. However, note that the downtrend line is lower than that range and may be encountered as resistance prior to reaching the price zone. It will depend on how fast the rally evolves as the trend line will be lower than the price range beginning in about four days.

Uptrend Price Structure Remains Intact

The pattern of higher swing lows and higher swing highs has been maintained in the chart of natural gas. Despite the recent dip to below the August 2 swing low, the recent swing low of 2.43 remained above the swing low from early-June.

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