FX.co ★ XEvils-Ash | Natural Gas (NG)

Due to a U.S. vacation, natural gas completed the week with a shorter session on Friday. A narrow range doji candlestick pattern emerged, indicating that indecision dominated the week. Both the opening and closing prices for the week were close to $3.25. Although a breakout above or below this level could signal the start of a sustained advance in that direction, the week did not yield any new information. Because it was a three-week high, last week's high of $3.32 is more significant on the upside than this week's high. Targeting the recent resistance zone close to the $3.42 level would be more likely if there was a clear rise above it, which would indicate a breakout of this range. Over the previous eight weeks, a growing, expanding formation of natural gas has formed. Over the previous month, support has consistently maintained close to the 20-week moving average, providing more proof of a growing bullish structure. This chart illustrates how a bullish trend developed over a week. Since the previous resistance level has turned into a support level, it suggests that prices could go up further and continue the upward trend. If the price continues to rise, the recent high, the 200-day moving average, and the lower swing high from March indicate the initial upside target zone. When combined, they represent an upside potential of $3.42 to $3.49. A bullish trend reversal signal is produced if that top level is surpassed, and the long-term uptrend line and the 61.8% Fibonacci retracement of the previous downtrend at $3.53 become targets. Natural gas would be in a position to test weekly support close to last week's low of $3.06 and the 20-week moving average, which is likewise around $3.06, if it fell below this week's low. Its potential importance as a pivot zone is further enhanced by the fact that an uptrend line is likewise in line with that price range.