Natural Gas and Oil Forecast: 7 Weeks of Ceasefire — Can WTI Hit $103 and NatGas Clear $3.05?
Gas prices currently trade at $3.022 on the 4h NYMEX, and has bounced sharply off of the low at $2.78 and are trading with a green candle that has reclaimed the red moving average near the $2.89 level. Gas prices continue to respect the white sloping descending channel, though with some bullish momentum after rejection of the Fibonacci confluence level at current. RSI has climbed higher than 55 and appears to be shifting short term momentum in favor of bulls.
Recent higher lows are forming in a short term base price pattern, and the blue support trendline is continuing to act as a minor support area. The blue upper trendline of the descending channel continues to act as an area of overhead resistance, which is expected to be in the $3.05 to $3.10 area. Price continues to trade bullish as higher volume confirms buyer absorption of any sell orders in the area with an immediate area of support that price holds above at $2.81, in what is a clear multi-week price downtrend.
Buy $3.022, Target $3.05, Stop Loss $2.98.