natural gas

natural gas

Monday, July 11, 2016

Natural Gas Corner - Technical Update - Potentially Bearish Harami Candlestick Posted On The Weekly Chart



The natural gas market rallied up to a new 2016 spot high at 2.998 the last week of June, a price level last reached in May 2015.

The market lost ground during last week’s holiday-shortened session as natural gas was heavily sold during last Tuesday’s session losing nearly 7.5% on the day.

A potentially bearish red Harami Japanese candlestick formed on the natural gas weekly chart which is called an inside range bar in Western-style technical analysis.

Confirmation of last week’s reversal will now be needed with  lower trade this week.  If the natural gas market closes this Friday with a second red candlestick forming on the weekly chart, a summer high for natural gas may be set.

If the market turns around and closes the week with a green candlestick on Friday indicating a higher weekly close, the 2.998 June high should again be retested as resistance and the rally may not yet be over.

A  key technical test for natural gas prices and underlying strength expected this week.

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