XNGUSD general trend continues to be upwards. The commodity found resistance at $3.794 and then bounced to $3.502, which is very close to the 23.6% Fibonacci retracement. The pair continued its uptrend after this and currently trades at $3.650.
The Bollinger bands are wide and pointing up, which indicates that the uptrend will continue. Volatility is expected to be high; as far as the bands are wide, this can be expected.
The relative strength index is at 63%, recovering from an overbought status; this will allow natural gas to continue its rally and perhaps break the resistance at $3.800. We saw the RSI stay overbought for eight straight trading sessions.
The short and long-term moving averages continue moving up, and the spread between the lines is getting wider, strengthening the long signals from other indicators.
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