Home Forex Markets Natural Gas Price Outlook: Downward momentum slows, 7-week losing streak ends

Natural Gas Price Outlook: Downward momentum slows, 7-week losing streak ends

by WOOWinvest
0 comment
Natural Gas Price Outlook: Downward momentum slows, 7-week losing streak ends

Natural gas prices end 7-week losing streak, up 4.32%; daily chart shows downward momentum is slowing; multiple dojis in candlesticks show price indecision

Weekly natural gas price chart – 7-week losing streak ends

Natural gas prices managed to close higher last week, although overall they are still quite weak. Prices rose 4.32% last week, but that achievement pales in comparison to the ongoing price declines since the second half of last year. However, it did mean natural gas was spared its eighth straight weekly decline, finally ending its longest stretch of losses since October.

DailyFX Trader DNA test is new online! Which trading mode is right for you?

The price failed to break below the March 2021 low of 2.422 for 2 consecutive weeks. However, despite strengthening support, the weekly chart shows no sign of a reversal, and the bearish trajectory signaled by the bearish head and shoulders pattern formed from last year remains in focus. If the price reaches the target level of the pattern, it will likely test the 2020 low, which is the 1.44-1.61 range.How Head and Shoulders Tops and Bottoms Can Predict Price Movement

Source: TradingView

Natural Gas Daily Chart – Multiple Dojis near Support

Looking at the daily chart, since the price reached the 100% Fibonacci extension level of 2.326, multiple dojis were recorded on the candlestick chart. This reinforces the signal of price indecision, which sometimes means a trend reversal may be brewing. The bottom divergence of the RSI indicator also shows that the downward momentum is slowing down.

If natural gas reverses upward in the future, the top will focus on the 20-day moving average. Here again may act as resistance to push the price back down. Conversely, a confirmed close above this level could open the door for a larger reversal. The upper target looks at the December 2021 low of 3.536, which may become a new resistance level.

On the other hand, an extension of the decline would bring the focus back to the downside, possibly towards the 114.6% Fibonacci extension level of 1.555 to the 2020 low.

Natural gas price outlook: Downward momentum slows, 7-week losing streak ends

Source: TradingView

(Written by Daniel Dubrovsky, translated by Leona)

More trading views and analysis are welcome@LeonaLiu_DFXDiscuss with me on twitter!

The content on this web page is general market commentary only and may not constitute investment advice of any kind (tax, legal, accounting). This article does not constitute an invitation or recommendation for direct investment in specific financial products. The content is for reference only. Readers should not rely on the information herein, nor should their actions or omissions be relied upon. We are not responsible for the results of any person’s actions or omissions based on this article. We make no warranties as to the accuracy of the content or suitability of the information provided. This article is not intended to be disseminated within the territory of the People’s Republic of China (excluding Hong Kong, Macau and Taiwan for that matter), except as permitted by the applicable laws of the People’s Republic of China.

Copyright statement: Unless it is for browsing the information on this website, or in accordance with the applicable laws or the terms and conditions, without our specific written permission, no one may copy, usurp, upload, link, or publicly demonstrate to a third party in any way , distribute or transmit any information or content on this website. For unauthorized reprinting of infringements, we reserve the right to further pursue the legal responsibility of the relevant actors. If you have business cooperation needs such as marketing, resource exchange, etc., please contact us.

element inside the element. This is probably not what you meant to do! Load your application’s JavaScript bundle inside the element instead.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy