One of the only commodities not trading near record highs lately, Natural Gas futures have been forming a lengthy basing pattern since the start of the year, and may have established a solid bottom at the recent lows. Natural Gas has been working out of a major bear market brought on by massive oversupply driven by record high prices in recent years.
This week's buying action in the futures may be a turning point, at least in the near-term, as the Triangle chart pattern formed by the sideways price movement has initiated a technical breakout. This breakout, shown here on a 240-minute time interval as identified by Autochartist, and projects an upside target between $4.68 and $4.92 for the nearby Natural Gas futures.
The duration of this Triangle chart pattern, combined with the high marks in all of the Quality measurements, suggests the turn higher from the formation may have legs. The initial Breakout Indicator reading of a full 10 bars is also encouraging for a successful attempt at reaching the forecast price targets in the trading sessions ahead.
For further information on this and other Autochartist products, visit our website at www.autochartist.com