NYMEX Natural Gas futures retested the lows in Mondays session before turning slightly higher at the close. The slide completes a short term falling wedge chart pattern, illustrated here on the Autochartist 15-minute time frame. As this level is again testing multi-year lows for thr natural gas market, any signs of strength are likely to find technical and speculative buying in anticipation of higher prices to come.
The falling wedge began forming near the $2.40 per million BTU price level prior to the market dropping precipitously. Minor strength appeared on the first test of the $2.30 support, with selling action turning the price lower again at $2.34 resistance to fill out the falling wedge pattern. The pattern scores well, with an overall Autochartist quality ranking of 8 bars.
As the price moved into the apex of the falling wedge and then bounced, a technical breakout generated a buy signal. This signal allows for a very close stop-loss order as the falling wedge support is firmly entrenched at $2.30 per million BTU, which is just below the current price.
The minimum projected price target for the move higher is the $2.34 level, though this market continues to hold tremendous upside potential in the longer term chart analysis.
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