1. Support & Resistance Levels
Resistance: Around 304.2 and 306.9. These levels have previously acted as a barrier to price movement.
Support: Near 303 and slightly below at ~302.7. The price has bounced from these levels, indicating buyers' interest.
2. Downtrend Channel
The price is moving within a descending channel (purple lines). A breakout from this channel could signal a change in trend. If it breaks above, bullish momentum may build, whereas a breakdown could extend the bearish trend.
3. RSI Indicator
The RSI (Relative Strength Index) is around 36.57. This is in the oversold zone (typically below 30), indicating potential exhaustion of selling pressure and a possible reversal if buyers step in.
4. Target & Stop-Loss Ideas
Target: If the price breaks the 304.2 resistance, the next target would be around 306.9.
Stop-Loss: A stop-loss below the 302.7 support is ideal to minimize risk in case the bearish momentum continues.
Technical View Summary
The market is in a short-term downtrend, but RSI shows potential for a reversal.
Key areas to watch: a breakout above 304.2 or a breakdown below 302.7 will determine the next significant move.
Trade cautiously with clear stop-losses and profit targets based on price action at support and resistance levels.
Here's the breakdown of the short-term, medium-term, and long-term views for Natural Gas Futures based on the chart:
Short-Term View (Intraday to 1 Week)
Trend: Bearish with possible reversal signs.
Indicators:
Price is in a descending channel, but it is attempting to hold above the 302.7 support.
RSI near oversold suggests potential for a rebound.
Key Levels:
Resistance: 304.2, 306.9
Support: 302.7, 301.5
Strategy:
If the price breaks 304.2, a short-term bullish move may occur. However, if it breaks below 302.7, further downside could be seen.
Medium-Term View (1 Week to 1 Month)
Trend: Still in a downtrend channel, with bearish momentum dominant.
Indicators:
Needs a clear breakout above 306.9 to reverse the medium-term trend.
If the price remains below 304.2, the downtrend could persist.
Key Levels:
Resistance: 306.9 is the critical barrier to shift momentum to bullish.
Support: 302 and 300 will be crucial to hold.
Strategy: Watch for a breakout above 306.9 for a medium-term trend reversal or further downside if prices fail to hold 300.
Long-Term View (1 Month and Beyond)
Trend:
The long-term outlook depends on whether the price can break the major resistance of 306.9 and sustain higher.
A breakdown below 300 could suggest a continuation of a long-term bearish trend.
Indicators: Longer-term price action will need confirmation of trend changes via major support/resistance breaches.
Strategy: A sustained breakout or breakdown from the current channel will be critical to determine the long-term trend.
Summary:
Short-Term: Bearish but potential for reversal if resistance is broken.
Medium-Term: Bearish unless price breaks 306.9.
Long-Term: Uncertain. Breakout or breakdown from the current price channel will set the long-term direction.
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