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Reversal For Natural Gas Likely

ByShivam Patel
Published 11/11/2016, 09:41 PM
Updated 07/09/2023, 06:32 AM
NG
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Natural gas has been falling uncontrollably after reaching a one-year high in October. The good news is that natural gas may be meeting resistance soon. The chart below shows that natural gas is in between the key levels of 38.2% and 50% of fibonacci retracement. It is likely that natural gas will meet resistance at around $2.50. The line in blue represents resistance formed by the peak of a prior trend and the trough of another. This line almost perfectly matches up with the 50% line of the fibonacci retracement. This indicates a high probability that natural gas prices will have a tough time breaking through that level of resistance. It is also noteworthy to mention the gap circled in red. Prices often move up to the range of the gap to ‘fill it up’. Although the time at which this happens is not certain, considering the resistance lines right below current prices, we can expect that the price will move up (assuming it does not break through resistance at $2.50).

Natural Gas Daily Chart

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