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Natural Gas has seen a steady incline from the recent lows witnessed in June. The commodity almost doubled in value before a decline at the beginning of the month.
A standard bearish divergence has seen a test to the $1.80 area. Prices tested and bounced off 61.8% of the $2.64/$1.78 downside Fibonacci leg.
We are now seeing a bullish sentiment as prices rose past $2.10, which is over the 38.2% of the $1.41/$2.64 upside Fibonacci leg.
The next target will be at 50%, except if the recent hidden bearish divergence comes into play.
The 4-hour chart shows a more intraday perspective. A bearish channel has been evident from the beginning of the month. A drop out of the lower channel saw prices touch monthly lows. However, this was short-lived as a pullback has seen support at the median regression line.
Currently, an attempt at the upper regression sees prices engulfed by the Ichimoku cloud. This is significant as a breakout is likely. The 50% and 61.8% will be the next targets should no fu...
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