Natural Gas Surges to Second Highest Price in 21 Weeks, Showing Strong Uptrend

Natural Gas Forecast Video for 27.06.23 by Bruce Powers

Natural gas rose to 2.82 today, triggering a bullish continuation of the uptrend. This is the second highest price for natural gas in 21 weeks and reflects improving underlying strength. There was only one-day in 21 weeks where it traded at a higher price. Given this bullish performance, and assuming natural gas holds up into the end of the month, it is set to end the month at its highest monthly closing price in six months. The month that still needs to be beaten is February’s closing price of 2.75.

Today Stalls Within Resistance Zone

Nevertheless, natural gas has stalled within the previously identified potential resistance zone from 2.77 to 2.83. Several of the indicators identifying that price zone as resistance have been hit today. They include the completion of an ABCD pattern at 2.79, testing resistance of the 100-Day EMA at 2.78, and the completion of a 78.6% Fibonacci retracement at 2.80. The RSI has reached a high reading that marked a swing high in May. Perhaps it marks a swing high in price again.

Retracement May be Needed Before Further Advance

It is not yet clear how the day will end, yet today’s developing candlestick pattern is showing signs of exhaustion. The day’s range is narrow and natural gas could close below the 50% level of the day’s range, which would be short-term bearish. Therefore, a drop below today’s low of 2.72 could lead to a retracement. We will also be watching the day’s close in relationship to the 100-Day line. If natural gas closes above the line, it will be showing more strength than if it closes below the line. Today is the first test of the line as resistance since price dropped below the 100-Day EMA in December.

Continuation Higher Shows Strength with Natural Gas then Targeting Higher Price Zone

On the upside, a bullish continuation is indicated on a move above today’s 2.82 high, while an advance above the resistance zone with a high of 2.83 points to a possible upside breakout of the range. If this were to occur, natural gas would next be heading towards the next higher resistance zone from around 2.97 to 3.03.

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