Natural Gases Futures (NG!), H4 Potential For Bullish Continuation!
Type:
Bullish Continuation
Key Levels:
Resistance: 5.175
Pivot: 4.425
Support: 4.219
Preferred Case:
Prices are on bullish momentum and abiding to our ascending trendline support. We see the potential for further bullish continuation from our Pivot at 4.425 in line 100% Fibonacci extension and 38.2% Fibonacci retracement towards our 1st resistance at 5.175 in line with 127.2% Fibonacci extension. Our bullish bias is further supported prices trading above our Ichimoku clouds and RSI being on bullish momentum.
Alternative Scenario:
If prices were to reverse, they can potentially dip towards our 1st support at 4.219 which is in line with 127.2% Fibonacci extension.
Fundamentals:
Fears that Russia may curb natural gases flows through Europe in retaliation for sanctions, coupled with colder weather conditions are positive for demand driven price with the need of the commodity as a heating fuel. We might watch for markets to continue its upwards trend.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.