Breakout Above $3 Comes Into Focus
An upside breakout above Friday’s high of $2.99 would provide the next bullish signal, but it should be accompanied by strong momentum to increase the chance of a move above this week’s high of $3.03. Otherwise, further consolidation above the 50-day moving average may follow. A decisive breakout would therefore provide an important test of whether the recent reversal can develop into a sustained advance.
Fibonacci Targets Point Higher
The next upside target is defined by the 61.8% Fibonacci retracement of the prior decline at $3.07. However, since that target is relatively close to this week’s high, a breakout above $3.03 could quickly bring the next higher target into focus: the 78.6% Fibonacci retracement at $3.20. That level becomes more significant if natural gas first clears the July lower swing high and confirms another bullish continuation signal.
