Natural Gas formed a strong Bullish Engulfing candle for the week ended the 25th of October, 2024, forming what appears to be a smaller reverse H&S pattern within a larger reverse H&S pattern. Please look at the weekly chart below.
Weekly Chart of Natural Gas - Bullish Engulfing candle for the last week forms a reverse H&S pattern
The breakout from both the smaller and larger patterns would happen if NG is able to close above 3190, the neckline above and the immediate resistance. Given the size of the pattern, it is expected to consolidate or even whipsaw before a convincing breakout above 3190.
Once the breakout happens, consider that there is no resistance till 5200 which is a level 60% higher from current levels. To put things in perspective, there was a steep 7 week fall from middle of December 2022 till the the first week of February 2023, when the price fell from about 7000 to 2400, a decline of ~65%. The ascent could well be as quick given that the underlying technical picture appears very bullish.
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