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This is an educational top down technical market perspective on Natural Gas. Looking at the monthly bars chart, we can see that this month opened in the middle of the balance area and took out the previous month's low. The market trading below this balance area now and moving forward to the next potential bullilsh support area that actually hold two months ago. Also, we can observe how the previous month got rejected from the last bracket area.
The previous week's low got taken out at the first day on this week and we are testing currently a potential support area. We'll see how the market will will react to this level now. The outside bar four weeks ago was the first heads up for a probable change in trend direction. This was followed by two inside weeks and the previous week finally took out the outside bar's low and closed below its range.
With a more bearish view we are moving forward to the daily bars chart. This timeframe one time framed lower since six days and left behind a gap area that could be a possible area to revisit. Friday's market took out the high from Thursday but closed inside of Thursday's range, so actually it was not a sign of change in trend. Anyway, today the previous low got taken out and the bearish trend remains. The next potential support area is marked on the chart.
Also interesting to mention on this daily timeframe was the nice support at the 61.8% Price Retracement level as well as the support at 50% level on the second test.
Looking at the weekly and daily timeframe with installed EMAs, we can see that the market is trading below the short-term EMAs as well as the long-term EMAs on both periodicities. Today's market for example opened around last week's average, so the probability of more selling occurring was high.
Let's take a look on the Regular Trading Hour's (RTH) TPO profile. We can cleary see a Double Distribution profile with an open gap area in the middle of last week's range. The previous week's low got taken out and the market left behind a unsecured high in the current profile.
Today's market opened inside of Firday's range and in the upper distribution area (ETH TPO Profile). All the day the market moved continuously lower and cleard Friday's unsecured low as well.
We hope you've enjoyed this quick educational market analysis recap. Stay happy and think simple!
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Take a look into our Trading Glossary.
You want learn more about our Trading Methodology?
Visit our community site or website to learn more about how we trade day-to-day. With an elite membership for example you can read some more indepth educational analysis posts and download our chart templates for Sierra Chart and NinjaTrader.
