Natural gas looking for support for bullish continuation

At the market’s closing on Friday, natural gas prices were at $2.42, at their weekly high

Natural gas chart analysis

At the market’s closing on Friday, natural gas prices were at $2.42, at their weekly high. This morning, at the opening of the Asian trading session, the price made a bearish gap from $2.42 to the $2.37 level. Below, we have seen sideways movement and price under slight bearish pressure. In the EU session, we have a break below the EMA 50 moving average and the $2.35 level. Everything indicates that we are moving further to the bearish side and will see the formation of a new daily low.

Potential lower targets are the $2.30 and $2.25 levels. If we go below $2.30, we will try to look for support in the EMA 200 moving average. Our inability to hold on there will increase the bearish pressure that pushed us below and thus only increase the bearish momentum.

The price could pull back to the  EMA 200 before continuing to the bullish side

For a bullish option, we need positive consolidation and the closing of this morning’s gap. This means the return of the price of natural gas above the $2.42 level. Then, we need to hold above to create a position for a continuation to the bullish side. After that, we move to a new higher high and strengthen the bullish momentum. Potential higher targets are the $2.45 and $2.50 levels.

The European automotive sector hints at trouble, and natural gas prices are divided, as any growth appears limited for now. Europe has successfully achieved its goal of securing enough gas for the upcoming heating season. Meanwhile, Russia is facing pressures in its financial system as China withdraws its liquidity support due to U.S. sanctions and Ukrainian incursions into Russia.

The post Natural gas looking for support for bullish continuation appeared first on FinanceBrokerage.