Natural Gas futures continued to creep higher following the plunge into multi-year lows. Autochartist has identified the latest push as a significant retest of key level resistance which may portend a price recovery in the near term. Monday's trading action carried the market above the key level at $2.55 per million BTU with a close near the session highs.
This move exceeds the last two rallies as shown here on the 30-minute candlestick chart, suggesting there is renewed buying interest above these levels and perhaps indicating the longer term lows have now been set. A return back below the key level, which now acts as support, would negate the breakout and imply further trade between the key level and the prior lows near $2.45 may be in store.
Barring a sharp reversal from Monday's highs, the projected price movement is for a continuation of the rally towards the target of $2.59 in Tuesday's session. This move higher is likely to trigger momentum buying, with several bullish natural gas patterns showing up on various time frames within the Autochartist platform. As this market remains extremely cheap relative to the rest of the energy complex, upside potential in the long run remains very strong. For further information on this and other Autochartist products, visit our website at www.autochartist.com
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