The energy commodity has not had much action in the last 17 sessions, the pair is moving up and down within a 7% range, which is not what most investors want to see, the price continues its consolidation period, which is not very attractive for traders.
The Bollinger bands are very narrow and that will decrease volatility even more in the short term, the pair trades in between the bands which indicates that the price is at a fair price; however not many traders want to hold to a trade that barely moves.
The relative strength index is at 40% which would allow Natural Gas to start a rally without entering an overbought status in the short term. The price is finding resistance at the 4.028 level on our 61.8% Fibonacci retracement. Our parabolic SAR indicates that the price will start to move up in the short term.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.