NATGAS closes above its opening price after recovering from early selling pressure
Henry Hub Natural Gas (NATGAS) Technical Analysis Report for Jun 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NATGAS ended Tuesday at 2.399 gaining $0.039 (1.65%) on high volume. Trading up to $0.025 lower after the open, Natural Gas managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 7th, NATGAS gained 0.98% on the following trading day. Closing above Monday's high at 2.365, the market confirmed its breakout through the prior session high after trading up to $0.041 above it intraday.
Daily Candlestick Chart (NATGAS as at Jun 11, 2019):
Tuesday's trading range has been $0.070 (2.96%), that's slightly above the last trading month's daily average range of $0.069. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NATGAS.
One bullish candlestick pattern matches today's price action, the White Candle.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for Natural Gas. Out of 276 times, NATGAS closed lower 58.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.16% with an average market move of -0.48%.
With four out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are CORN gaining 2.32% and WHEAT closing 2.16% higher. On the flipside the worst performers have been CRUDE closing -0.69% lower and COFFEE losing -0.65%. Read more