US natural gas prices have been trading upwards recently. Taking a look at H4 interval, we can see that the latest upward impulse was launched at the beginning of June, when price bounce off the lower limit of the Overbalance structure near $2.15 per MMBTu. Strong upward move was launched later on and price climbed to fresh local highs above $2.70 per MMBTu. Nevertheless, the last couple of days saw the price pull back and move close to an important support zone.
NATGAS at H4 interval. Source: xStation5
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Create account Try a demo Download mobile app Download mobile appPrice is approaching a key support zone near $2.68 per MMBTu, which is marked with the lower limit of the local market geometry, 50% retracement as well as previous price reactions. According to the Overbalance methodology, bouncing off this area may hint that another upward impulse is about to be launched. On the other hand, breaking below this support may trigger a deeper drop with price moving towards 100-period EMA or previous low near $2.44 per MMBTu.
NATGAS at H4 interval. Source: xStation5
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