Upside Targets Within Wedge Structure
The beginning of the wedge pattern at $3.49 provides an upside target, while the falling 200-day moving average at $3.42 points toward another potentially significant dynamic resistance zone. Since it is falling, it will soon fall below the long-term uptrend line, taking its place as a key level. The long-term trendline was broken in February and there was only one minor pullback since then. Last week’s wedge breakout began a second upswing toward prior trend support, now acting as resistance, to test it.
Fibonacci Extension Zone in Focus
The 78.6% Fibonacci retracement of the prior decline at $3.28 also provides a target zone. Keep in mind that the falling 200-day moving average will get closer to the retracement zone over time, adding to its potential significance as a possible resistance zone.
If you’d like to know more about how to trade natural gas, please visit our educational area.
