NATURAL GAS Hit the 4 month Support. Conditions for a rebound.

4 dic 2020

NG almost made contact with the 2.440 level today, which has been the major Support since August 21. So far we have 3 perfect touches on the Support, which alone creates the conditions for a strong rebound.

A closer look on the 1D time-frame shows that this pattern resembles the March - June 2020 sequence, when NG also made 3 hits on the Monthly Support. As with now, the price was also coming at that time from a 1D MA50 rejection (turned into a Resistance after previously being a Support). Once the 1D MA50 broke and after a final pull-back, the very aggressive rally of August - October took place. The RSI patterns are also similar. I am carefully buying now and after the MA50 breaks, I will add on the next available pull-back the remaining of my position. The long-term target is 3.400.

P.S. It is always helpful to keep a longer-term perspective, having in mind NG's multi-year Cycles within the Channel Down, as shown below:





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