An insider's look at the current markets
And according to trading rules within price channels, the next target is set at 7.284, which is too far away, but it’s normal since we are analyzing the price on weekly basis. In order for natural gas to acquire this target.
A number of positive technical factors must be met to allow the price to rise to the upside.
The first one was achieved after natural gas was able to breach the resistance of the falling wedge model as shown in the picture above in red, where the price retested the resistance and managed to settle above it, moreover, the SMA 50 continues to provide strong support for natural gas and continues to push it to the upside, while signs of an upside technical model are starting to appear, where the possible neckline is located at 4.676.
Once the price breaches this level and settles above it, we could expect natural gas prices to rise towards the target of this model at 6.325, on the other hand, the Stochastic is providing negative signals, which will force the prices to fluctuate around the SMA 50 level until it can eliminate the negativity and rise towards the aforementioned bullish scenario.
In conclusion, we expect natural gas to rise over the short term, taking into consideration two important conditions that must be met, the first one is a clear breach of the 4.676 resistance level, and the second one is settling above the main support for the upside channel at 3.680.