Is Natural Gas Preparing For A Big Rally?
A few days back when was trading around 3.20-3.23 I warned through Twitter that a pullback towards 3.01 (and more specifically towards cloud support) was justified and expected. I also posted an analysis .
Natural Gas is in a corrective phase and in a buying-opportunity-pull-back from recent highs. Price is rising in an impulsive pattern and has broken out of the long-term triangle pattern.
Natural Gas has broken the bullish channel, RSI was diverging, and has now reached the Ichimoku cloud support at 3.09-3.07 price area. This is also the 38% Fibonacci rertacement of the rise from 2 month lows. I believe that this support has a lot of chances to hold and produce a new upward wave that will bring price towards 3.30.
On a longer-term basis, price has broken out and above a consolidating triangle pattern and is now back testing the upper triangle boundary from the outside. A successful re-test of this will be if price respects support and starts to bounce higher from current levels. This pullback is a nice buying opportunity and I believe NG has a lot of chances to have already completed the pullback.
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