A bearish triangle pattern on the weekly natural gas chart
was triggered last week with the drop under lower trend line support between
2.730-2.740 by the spot September 15 contract.
This triangle which begins at the early-May 2.443 point 1
low was completed at the point 4 2.951 high set in late-July.
With the triangle initiated, the 2.433 point 1 low now
becomes the first downside price target. If this low is reached and
broken as support, a much deeper decline is expected with the next longer term
support then becoming 2.230-2.250.
A rally back above upper triangle trend line resistance
currently near 2.900 will negate the triangle pattern.
No comments:
Post a Comment