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Natural Gas - setting up for a possible re-test of June's resistance

Chart & Data from IG

By Minipip
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Natural Gas is shaping up to test the resistance area of $3,015-$3,193 in the coming weeks as summertime is coming to an end with colder months now approaching. Currently, the commodity is trading at around $2,740 a tonne with the resistance area highlighted using the yellow channel on the weekly chart. Securing this area would create an increased possibility of the price finishing the year around the same levels where it began, with the potential to even eke out a small percentage gain. A break above this area could shift the focus to the 2023 October high of $3,664. Towards the downside, the main support is now along the ascending trendline after establishing a higher low back in August following the sell-off from the outlined resistance. The support along the trendline reads around $2,225 p/t. A break below here would likely create some concerns but traders could still look to support around $1,916. Only a break below $1,916 could lead to an extended downside. Looking at the momentum indicators, bullish momentum seems to be present once again, for the first time since the start of July. The MACD has crossed back above its signal line and the RSI is bullish and rising, reading 60.  

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