Hello friends, I continue to be bullish on Natural Gas (NG) following my previous long ideas. As expected, NG managed to break the downtrend line marked in the chart and closed above the 2.7 resistance yesterday. Any pull backs from here should be considered as buying opportunities in the immediate short term. There is literally no resistance ahead of us until the 2.9 - 2.95 levels which I expect to be a strong resistance zone for the following reasons:
1- 50 DMA currently sits around 2.91
2- This level was a strong resistance back in Sep and Nov 2020
3- 50% Fib retracement sits at 2.9 as marked in the chart
Nevertheless, I expect NG to break this zone this time but probably will have to pull back before breaking it. Once broken, we are looking at much higher targets starting from 3.15 followed by 2020 ATH at 3.43. If NG fails to break 2.9 - 2.95 zone, this could validate a H&S bearish pattern that can potentially bring the price much lower. Overall, I remain bullish and will continue to add buy positions in pull backs!
Do you agree? Please share your thoughts and if you like this idea, please like and follow.
Good luck!
1- 50 DMA currently sits around 2.91
2- This level was a strong resistance back in Sep and Nov 2020
3- 50% Fib retracement sits at 2.9 as marked in the chart
Nevertheless, I expect NG to break this zone this time but probably will have to pull back before breaking it. Once broken, we are looking at much higher targets starting from 3.15 followed by 2020 ATH at 3.43. If NG fails to break 2.9 - 2.95 zone, this could validate a H&S bearish pattern that can potentially bring the price much lower. Overall, I remain bullish and will continue to add buy positions in pull backs!
Do you agree? Please share your thoughts and if you like this idea, please like and follow.
Good luck!
Trade active:
Looks like NG decided to retest the broken trend line which held well yesterday.
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