Natural Gas –Strong Trend Reversal Sign on daily Chart

Natural Gas –Strong Trend Reversal Sign On daily Chart

Last Friday Natural Gas had given a sign of trend reversal and today's gap-up opening in Natural Gas price has confirmed this for a strong reversal.

It given a mild positive closing on Friday, although it went high during the day but the closing was not so strong. If we try to draw a downward sloping line on the long-term daily chart we can see that it took support two times and the last support completed 78% Fibonacci retracement level. But that point is not so important for me, the more important point is that it has breached now the short term downward sloping line on the daily chart and that signals a strong reversal sign.

Natural Gas seasonal demand is also in focus which can drive the price beyond the recent top of 2.710.

Now things are changing to support the price-rise in Natural-Gas, from these levels.

I have a bullish view on Natural Gas for the target above the recent high of 2.710.  My stop-loss would be below the recent low maybe 2.175. But I would like to take fresh long on a small correction on NYMEX price of NG.

Disclaimer: The analysis and views given in this article are pure of my own and this is not a trading or investment advice. Do your own research and analysis or take professional advice before taking any position in the market . I will not be responsible for any loss in any manner.