In my analysis, I have identified that the natural gas market appears to have formed a head and shoulders pattern. This is a technical chart pattern that is often used to predict a reversal in the trend of an asset.
The pattern is formed by three distinct peaks, with the middle peak (the "head") being the highest and the two other peaks (the "shoulders") being lower. The "neckline" of the pattern is determined by connecting the lows of the two shoulders.
In this case, I have identified the head of the pattern to have occurred on August 22nd, 2022, when the price of natural gas reached $34.50. The right shoulder of the pattern occurred on December 28th, 2022, with the price reaching around $17.
Based on this pattern, I am predicting that the price of natural gas will drop to around $4.20. This prediction is based on the idea that the head and shoulders pattern is a bearish reversal pattern, indicating that the price will move in the opposite direction of the previous trend.
It is important to note that this is a prediction and not a guarantee of future performance.
The pattern is formed by three distinct peaks, with the middle peak (the "head") being the highest and the two other peaks (the "shoulders") being lower. The "neckline" of the pattern is determined by connecting the lows of the two shoulders.
In this case, I have identified the head of the pattern to have occurred on August 22nd, 2022, when the price of natural gas reached $34.50. The right shoulder of the pattern occurred on December 28th, 2022, with the price reaching around $17.
Based on this pattern, I am predicting that the price of natural gas will drop to around $4.20. This prediction is based on the idea that the head and shoulders pattern is a bearish reversal pattern, indicating that the price will move in the opposite direction of the previous trend.
It is important to note that this is a prediction and not a guarantee of future performance.