NATGAS closes within previous day's range after lackluster session
Henry Hub Natural Gas (NATGAS) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NATGAS ended Thursday at 1.914 edging higher $0.008 (0.42%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NATGAS as at Jan 23, 2020):
Thursday's trading range has been $0.060 (3.14%), that's below the last trading month's daily average range of $0.079. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NATGAS. Prices continued to consolidate within a tight trading range between 1.862 and 1.957 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
After having been unable to move lower than 1.889 in the previous session, the contract found buyers again around the same price level today at 1.897. The last time this happened on January 14th, NATGAS actually lost -2.54% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 2.095.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for Natural Gas. Out of 111 times, NATGAS closed lower 60.36% 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 58.56% with an average market move of -0.61%.
With four out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are CORN gaining 1.15% and COFFEE closing 1.02% higher. On the flipside the worst performers have been CRUDE closing -0.67% lower and SUGAR losing -0.63%. Read more