Bullish Wedge Breakout in Progress
Natural gas is following through on an upside breakout of a falling bullish wedge reversal pattern triggered two weeks ago. A first minor pullback following that breakout led to the $2.68 low. Once a prior resistance zone is shown as support the bull trend is ready to proceed. A new minor trend high was reached on Monday, followed by a minor pullback to support near the 10-day moving average.
Broader Trend Pressure Points Ahead
The larger dynamic at play is a pullback to the upside to test prior dynamic support, as represented by the long-term uptrend line and 200-day moving average, now at $3.41 and falling. A little lower is the other long-term trend indicator, the 100-day moving average. It is now at $3.26 and represents another potential resistance zone.
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