Natural Gas Daily - Reversal symmetrical triangle
Natural Gas is currently forming a symmetrical triangle pattern, and I’m watching for an upward breakout confirmation. However, I’m cautious, as previous rallies in gas prices coincided with major events like COVID-19 and Russia’s invasion of Ukraine. Could we be on the brink of another significant catalyst?
The source of the picture in my chart is:
forexpeacearmy.com/forex-books/119/chapter-14-part-vii-triangles
Note: I am sharing my thought process on these market moves and adjust my analysis as the market evolves. This is not meant to be followed by others, as I am prone to mistakes like anyone else. Instead, I welcome feedback that can help me question and refine my analysis.
The source of the picture in my chart is:
forexpeacearmy.com/forex-books/119/chapter-14-part-vii-triangles
Note: I am sharing my thought process on these market moves and adjust my analysis as the market evolves. This is not meant to be followed by others, as I am prone to mistakes like anyone else. Instead, I welcome feedback that can help me question and refine my analysis.
Trade attivo
Added the recent escalation between Iran and Israel.
Nota
Ukrainian forces utilized ATACMS missiles on November 19, 2024, targeting Russian territory. This marks an escalation in the conflict, adding uncertainty to the geopolitical landscape.
On November 19, 2024, Natural Gas prices surged, breaking out of a symmetrical triangle pattern on the daily chart. Symmetrical triangles typically signal a consolidation phase, and a breakout often leads to a significant price movement in the direction of the breakout.
Breakout Confirmation:
Confirm the breakout by analyzing the volume on the breakout day. Higher-than-average volume strengthens the breakout’s validity.
Identify the breakout point and monitor if the price holds above that level in subsequent sessions (to avoid false breakouts).
Key Levels:
Resistance: Look for previous swing highs or Fibonacci levels above the breakout point.
Support: The lower boundary of the triangle now acts as a support level. Keep an eye on this for potential retests.
Trend Indicators:
Moving Averages: Check if short-term moving averages (e.g., 20-day EMA) are crossing above long-term ones (e.g., 50-day EMA), confirming an upward trend.
RSI (Relative Strength Index): Ensure it’s not in the overbought zone (>70), which could signal a short-term pullback.
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