Natural Gas futures made a u-turn to kick off the holiday trading week, reversing just shy of key level support to create a long entry point on the chart. Autochartist is plotting the level just below the $3.13 per million BTU price, with the most recent approach shown here on the 15-minute time interval.
As this market is fresh off of multi-year lows at the $3.00 level, the potential for this key level to hold is suggestive that a major bottom may be forming. While a break through the $3.13 support remains possible for a retest of the actual bottom, the current resilience indicates buying interest at this slightly higher price.
By entering long positions here with a stop-loss below the key level support, traders may be able to establish positions for an upside rally with a very low risk on the position. A surge in price to finish the year could leave such an entry well-placed for a sustained recovery if the current trading range is broken to the upside.
Overhead resistance remains at the $3.20 level on the short term charts, which could easily be overcome on speculative buying interest at these low prices.
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