Fibonacci confluence on radar
Next, notice the Fibonacci confluence zone approaching 2.68 to 2.70. Natural gas prices are on track to end the week near this week’s highs, and with bullish momentum accelerating as seen in Friday’s broad price range and strong green candlesticks, prices could get there soon. possible to reach. Further up is the topline of the descending blue dashed trend channel and the 78.6% Fibonacci retracement at 3.00.
Caution is required regarding further expansion of natural gas
This looks like a swingback rally in response to a sharp decline from the Jan. 12 swing high of 3.38. Natural gas fell 1.86 (54.9%) in 25 days to bottom at 1.52. Since the subsequent low of 1.58 (°C), natural gas prices have increased by 65.3% to today’s high. The Relative Strength Index Momentum Oscillator (RSI) continued its rise today, reaching its highest since its peak in April 2022.
This peak was followed by a rapid 21% decline to a 38.2% Fibonacci retracement. If a similar scenario played out in the current bull market, natural gas would complete a 38.2% retracement at 2.23. This assumes that 2.64 turns out to be a swing high. On the other hand, if the retracement begins at the top of the next resistance zone at 2.70, the 38.2% retracement would take natural gas prices near 2.28.
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