Natural Gas is currently sitting at $2.716, sliding away within a descending channel. And the candlesticks – they’ve got lower highs and bearish closes telling us that yes, the pressure is on. We’ve got a key support level at $2.672 and resistance up at $2.806.
RSI at 42 is saying that the bearish momentum is going strong but we’re not over-sold yet. If we look at the Fibonacci retracement from $3.065 to $2.568 then we can see that $2.806 is the level we’re bumping up against.
Moving averages are sloping downwards reinforcing that bearish bias. Break below $2.672 and it’s possible that we could drop all the way down towards $2.600.
Trade idea: Sell when we break below $2.67 – and your stop is at $2.81.
