Natural Gas is expected to retest the top of its converging range at $3.267, above which would see a bullish “triangle” pattern established, the Credit Suisse analyst team report.
Natural Gas to retest the upper band of the trading range
“Natural Gas is re-gaining technical momentum and we expect a test of the upper band of its trading range, currently at the $3.267 downtrend, to unfold during the next 1-3 months, which we expect to cap the market, at least temporarily.”
“If the $3.267 downtrend is cleared, this would trigger a large ‘triangle’ continuation pattern, with the ‘measured objective’ seen much higher at $4.56, which we would expect to be reached over the longer term. We do though see other important resistances in between, such as the $3.396 triangle high from late October 2020 and the 61.8% Fibonacci of the whole 2018/2020 downmove at $3.60, with a potential long-term downtrend also seen at $4.271.”
“The 63-day average at $2.72 needs to hold to avoid a renewed trading-range, as well as the even more important 200- day average at currently $2.57.”