Natural Gas Rally Nearing $2.95 Resistance - May Target $3.75 or Higher

Quietly, as we’ve been focused on Gold, Silver, and other symbols, Natural Gas has rallied above the $2.00 level and is starting to break higher again targeting the $2.95 level. The very deep “rounded bottom” pattern that set up in early 2020 presented a very real opportunity for skilled technical traders by setting up multiple, very deep entry points. We wrote about these setups in a May article when Natural Gas broke $2.00 and again a few weeks ago when NG started its upside breakout move.

The current rally as seen in the chart below appears to be stalling near the $2.50~$2.55 level, which goes all the way back to the Fibonacci Predictive Modeling System trigger levels from April 2020 and October 2020 (see the RED LINES on the chart). We believe any stalling price levels near the $2.55 level will breakout to the upside with a further rally attempting to target the $2.95 level. After that level is reached, there is a potential that a further upside price move may take place, but we would urge skilled traders to consider the $2.85 to $2.95 level as the “pull profit” level. Any further leg higher may, or may not, actually happen....Continue Reading Here.

Is Natural Gas Ready To Rally?

By: Chris Vermeulen at The Gold & Oil Guy.com

Natural gas (UNG) has recently caught my attention. While it was in a significant downtrend for the better part of a year it has recently been consolidating right under the $20 level. A look at the daily chart shows a long move down and then recently a sideways consolidation pattern. While this is typically a continuation pattern I am beginning to believe think that the next move may be up rather than an extension of the previous down trend.

* Over the last two weeks there been significant support above $18 and significant volume.

* The $20/$20.50 level has been tested multiple times and the more tests it undertakes the more likely it is to break.

* Both the 20 day and 50 day moving averages have turned upwards and UNG is trading above both.

If we zoom in a bit and take a look at the hourly chart we are presented with two scenarios

1. The rising wedge holds and UNG breaks through the $20 – $20.50 resistance level on high volume and a new long term up trend is produced

2. The head and shoulders pattern within the wedge breaks downwards and the downtrend resumes

I’m leaning towards option one but will be waiting for a breakout confirmed with volume in either case.

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