Natural Gas Technical Analysis and Near-Term Outlook
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Natural gas tested the $1.66 smaller than (0.618) target of the wave down from $2.152 again today. This target continues to hold on a closing basis, and there is now a small double bottom that has formed around this key objective. Even so, meeting the $1.66 objective is bearish for the outlook because most waves that fulfill their smaller than target eventually extend to the equal to (1.00) target, in this case, $1.48. Therefore, the outlook continues to lean bearish for the coming days. Closing below $1.66 will call for a highly confluent and important target at $1.62 that then connects to $1.58 and lower.
Nevertheless, this is still an area in which the move down may stall. Should prices rise above $1.74 look for a test of the $1.76 smaller than target of the wave up from $1.649. Settling above $1.76 would call for a test of $1.82, a close above which will confirm the double bottom and put the odds in favor of a more substantial test of resistance instead.
