Have we hit the bottom yet?
At 2.42 and 2.33, respectively, natural gas achieved an 88.6% Fibonacci retracement and the 100% objective for a declining measured move around the bottom. In other words, it is currently rebounding off an area of logical support that may mark the bottom.
Trading Week-to-Week
The price level to monitor right now is the high from last week, 2.78. Natural gas has been trading within this week so far, and it may continue to do so throughout the week. This would set up a possible upside breakout bullish reversal of an inside week, a kind of consolidation, for the following week. Nevertheless, whether it occurs this week or the following, a rise over 2.78 is positive.
Daily Patterns
As a sign of strength, the price went over the 34-period EMA for the first time in a week. In addition, the brief swing’s 50% retracement is around 2.97, not far from the minor downtrend line.