Natural Gas Prices on the Rise, Bullish Continuation Ahead?

Natural Gas Forecast Video for 25.04.23 by Bruce Powers

Natural gas further strengthens following a retracement to the 50% level last week. Today, is the second day in a row that natural gas has put in a higher daily high and higher daily low, the definition of an uptrend. Nevertheless, it remains within consolidation of an expanding triangle consolidation pattern. This pattern can be a trend reversal or trend continuation pattern. For the time being, a bullish resolution looks to be the most likely scenario.

Move Above Key Pivot Signals Higher Prices

The next key pivot to watch is the most recent swing high of 2.38 as a daily close above that high will trigger a bullish continuation of the developing uptrend. At that point, the next target would be the completion of an ABCD pattern at 2.58. That is also very close to the 61.8% Fibonacci retracement at 2.61. A little higher is an internal swing high at 2.67 (also weekly high) from March 14. If natural gas can close above that high, it improves the chance to keep going.

Swing High from March is Key Target

Nevertheless, a more significant price target for natural gas if it can get off the lows, is the swing high of 3.03 from early-March. That price area is also identified by a measured move and target derived from the measuring objective of the expanding triangle. A large, measured move chart pattern is marked by two rising arrow lines on the chart. The second arrow marks the completion of the pattern where the price distance in the second move matches the ascent in the first. That occurs at 3.00.

Expanding Triangle Upside Target

We can also derive a target by measuring the triangle. Although the target could change later and be higher than what we calculate today. We determine the distance from the top to bottom line at the widest section so far. If price continues to consolidate within the triangle formation the distance between the top and bottom lines may increase. Currently, we will use 0.51 based on the pattern to date. That price distance is then added to the top line at 2.44 to arrive at a potential target of 2.95. That is near the target discussed, thereby creating a target zone from around 2.95 to 3.03.

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