The natural gas weekly chart shows the triangle pattern
which has been forming since the early-May 2.443 contract low. The triangle has four points for completion which
are labelled in blue.
Triangles by definition have a 75% chance of being a
continuation pattern rather than a reversal pattern. In this case, the higher percentage chance
would be for a downside breakout rather than an upside reversal.
Lower-2.700 support is the level that needs to be broken in
order to trigger the triangle. If this
occurs, 2.440-2.450 and 2.230-2.240 will become the next longer term support
levels.
If the breakout from the triangle instead comes to the
upside above lower-2.900 resistance, the longer term trend for the market will
turn back up.
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