Natural Gas has dropped more than 43% since start of 2023, it's heavily oversold and hitting a major support zone (2.45 - 2.20 levels) , highlighted in blue box. In my previous post, I had a target of 2.33 as per Fib measured levels. I strongly believe we have seen bottom in NG short term, might go lower some more to test the support zone and build a base.
Short term I'm expecting NG to technically bounce to target 2.789, 3.37 levels (white lines).. Best case might test the $4 levels, where the down sloping pink line meets.
For any reason, if 2.20 support levels get broke, we might see lower target $1.795 and 1.44.. I believe we might see these downside targets only after a technical bounce 2.789, 3.37 levels.
Let me know your thoughts in comments section
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2.20 critical support level failed.. next support level at $1.795..
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This is 2h chart. NG given a channel breakout. I believe $2 is near term bottom and we can see technical bounces.. resistance levels marked with yellow horizontal lines.
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This is weekly week of the same chart.. NG briefly pierced 2.20 levels and hit $2 levels and bounced back to close above support 2.45 levels. This looks like a short term bottom in NG and we'll see technical bounces to hit $2.8 levels next week... NG needs to consolidate for next few weeks and build some base at this levels to hit the $3.37 and $4 targets..
Trade closed: target reached
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Target 1 $2.789 reached today, high was $2.839 .. I believe NG will consolidate in a range to form a bull flag before hitting next target $3.37 ..
Update: This is a 1 hour chart. NG seems to have found support at 2.40 and forming a rounding bottom with volume getting picked up recent days.. This could mark a short bottom for now and could eventually give a break out once it start moving above 2.62... There're a lot of shorts still out there, any break out with high volume will trigger short squeeze and we could see the targets 2.789, 3.37 taken out quickly... I believe we could see this move in next 1-2 weeks..
gmaster29
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This a 1 hour chart.. NG has been trending in downwards channel.. watch for the channel breakout for trend reversal.. I have also marked few resistance levels during uptrend.
FlashingGraphs
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Any updates?
gmaster29
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@FlashingGraphs, hitting 2.33 fib level target and bouncing off.. low was 2.341.. Refer to my related post in the link above.. 2.4 to 2.2 is good support zone..
FlashingGraphs
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@gmaster29, Thanks. Yes my target is min 4 by April/May
gmaster29
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@FlashingGraphs, $2.20 support is crucial to hold.. otherwise we'll be looking at $1.79 and $1.5 ..
FlashingGraphs
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@gmaster29, it will hold. Levels lower are COVID times.