The Commodity Specialist view – During Apr/May Natural Gas started to find support after earlier weakness this year. Initial bull signals have now been given but the chart has reached the point where bulls need to up their game and push the market higher to confirm a positive outlook.
- DAILY CONTINUATION CHART:
In the Commodity Specialist Guide we have, for some time, been looking at the Daily continuation chart as well as the front month – the former is markedly different to the latter but it does reflect the most actively traded prices of the time.
Here, it has been useful to note how well support has worked at the 61.8% pullback level.
And now, note how 61.8% has also provided recent resistance! - DAILY CHART – AUG-10:
The recent erosion of the bear channel top saw temporary resistance emerge close to a 61.8% retracement on the front month too.
But bulls now need to see a break of this to ignite the next stage of the recovery.
In our Guide buyers on dips have been favoured and, so far, approximate support has come from near the top of the Apr/May base. We have also marked in the 4.350 76.4% pullback level, which will ideally hold now.
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