The energy commodity managed to reach 6.771 which was previously reached in December 2008. XNGUSD started a rally in mid-March and has only found five pullbacks since. The short and long-term moving averages continue moving upward, and the gap between the lines is increasing.
The Bollinger bands are very wide, which will allow the pair to continue moving upwards, however, the pair is currently trading above the upper band, suggesting that the price is relatively high. From a technical analysis perspective, the pair should retrace in the short term, but there are fundamental factors influencing the price spike.
The relative strength index is at 79% which is already overbought, usually, we would see the price drop after a few sessions of being overbought, but Natural Gas has been overbought for the last five trading sessions as the rally continues. Our parabolic SAR indicator suggests that the price will continue to move upwards.
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