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No Let Up as Selling Pressure Pushes Natural Gas Lower
There are no indicators that the steadily declining cost of natural gas will stop.
Upcoming Fibonacci Retracement at 88.6%
If the price of natural gas continues to drop, there are a few regions to keep an eye on for support. 2.42 is the subsequent Fibonacci retracement level. That is the 88.6% retracement of the complete uptrend from the low point in June 2020. (not shown).
Lower Measured Move Targets
A measured maneuver that is 100% anticipated completes at 2.33. The price decline in the first leg down parallels the price decline in the second leg down, which began after the 10.03 swing high hit in late August 2022. The 7.60 swing high from last November serves as the beginning of the second leg down. The measured move is shown on the chart by purple arrows moving downward. It is frequently referred to as a zig zag or lightning pattern and represents one of the most prevalent repeating patterns or fractals in the market.
Similarity to Previous Market Movements
The measured move pattern is used by technical analysts to find symmetry or resemblance between price movements. To determine objectives for the second leg swing from the first leg, they will also look at Fibonacci projections of 127.2% and 161.8% in addition to searching for a match with previous swings.
The overall decline from the high of August 2022 has been 7.42, or a loss of 73.9% over 110 trading days. By any standard, it is a very quick and abrupt adjustment. Of course, once a bottom is seen, a quick reaction might also happen. Once a reversal occurs, short sellers can start attempting to cover quickly. Therefore, once support is discovered and held, keep an eye out for indications of a bullish reversal.
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