Natural Gas Price Momentum Builds Up

Natural gas has surged past significant resistance levels, unlocking bullish trends with projected targets between $4.08 and $4.17. If the upward momentum persists, prices could even reach $4.46.

On Tuesday, natural gas exceeded the May peak of $3.84, hitting a new high of $3.88 before retracing slightly during the day. This set a 48-day high and continued two advancing ABCD patterns visible in the chart. A newly added smaller ABCD pattern (highlighted in orange) expanded the target range, marked in red. However, for this breakthrough to be validated, a daily close above $3.84 is necessary. Achieving this will bring further targets within reach. Failure to close above this level could mean resistance remains around $3.84.

Bull Breakout Triggers

A confirmed daily close above $3.84 would set in motion a breakout with target zones from $4.08 to $4.17. This range’s lower end is the initial aim of the larger ABCD pattern (in purple), while the upper end aligns with the smaller pattern (in orange). The midpoint, at $4.12, aligns with the 61.8% Fibonacci retracement level. The analysis predicts there’s at least a good chance of reaching $4.08.

Weekly Breakout Triggers

Today, a weekly breakthrough was noted above last week’s high of $3.77. This level, compared to today’s closing, might further indicate rising demand. The upward trajectory seems promising. The recent trend has rebounded from support near the 200-Day MA, and not long ago, it surpassed the 50-Day MA (represented in orange), testing support in that area during last week’s bearish downturn. The faster 20-Day MA (in purple) confirmed short-term bullishness by turning upward a few days ago and holding last week’s support.

Higher Targets Reach $4.46

Today’s rally hints at an upward ambition for natural gas. While the initial target zone is likely to be attained, prices could surpass this range. Further targets start at a previous swing high of $4.25 from March and a convergence zone between $4.35 and $4.37. The 78.6% Fibonacci retracement level rests even higher, at $4.46.