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Pure Fuel Forecast Video for 10.04.23 by Bruce Powers
As soon as once more natural gas is testing its prior lows because it falls to a low of 1.99, which is under final week’s low. It ends the week bearish, close to the low of the interval. A day by day shut under final week’s low of two.00 has pure gasoline subsequent concentrating on the bear pattern low of 1.97 from February 22. At that time pure gasoline had corrected 80.4% from its August 2022 peak of 10.03. However, the doubtless bullish weekly hammer candle from final week, mentioned beforehand, is now negated because the low of final week was damaged to the draw back.
Bear Development Continuation Triggers Beneath 1.97
A day by day shut under the 1.97 space triggers a bear pattern continuation with pure gasoline presumably accelerating to the draw back at that time. A number of subsequent targets are famous on the chart with the primary being a previous swing low help stage on the 1.79/1.80 space. Different value areas the place help could possibly be seen embrace quite a lot of Fibonacci extensions. They’re extensions of better than 100% retracement ranges of the newest rally. That rally noticed pure gasoline advance as a lot as 53.9% in solely eight days. It peaked at 3,027. The 127.2% Fibonacci extension is at 1.68, adopted by the 141.4% retracement at 1.53, and the 161.8% extension at 1.31.
Might Pure Fuel Flip Larger?
Alternatively, a breakout above this week’s excessive of two.20 gives a bullish sign. That may be the primary signal of power with any reliability. If pure gasoline can then shut above the two-week excessive of two.24 it may need an opportunity to proceed larger. Draw back strikes have been muted the previous couple of weeks, and the 14-Day RSI continues to indicate bullish divergence with value. Every of those elements says to be cautious of the draw back till the state of affairs is clearer, and don’t be caught off guard if pure gasoline rallies as a substitute of declines. Not a prediction, simply that we wish to be prepared for both course.
Preliminary close by upside targets embrace Fibonacci retracement ranges at 2.39 (38.2%), 2.51 (50%), and a couple of.63 (61.8%). Each the 38.2% and 61.8% retracements are strengthened by the truth that there’s additionally a weekly excessive at every of these ranges. As soon as a bullish reversal is confirmed larger targets are definitely attainable and certain, with the primary being the newer swing excessive at 3.03.
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This article was initially posted on FX Empire
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