NATGAS closes higher for the 3rd day in a row
Henry Hub Natural Gas (NATGAS) Technical Analysis Report for Oct 21, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NATGAS ended Wednesday at 3.341 gaining $0.083 (2.55%). Today's close at 3.341 marks the highest recorded closing price since September 7th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 3.308, the market confirmed its breakout through the prior session high after trading up to $0.054 above it intraday.
Daily Candlestick Chart (NATGAS as at Oct 21, 2020):
Wednesday's trading range has been $0.109 (3.35%), that's far below the last trading month's daily average range of $0.175. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NATGAS.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 3.325 (now S1), which is likely to act as support going forward. The last time this happened on Monday, NATGAS gained 2.13% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test September's close-by high at 3.589.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Natural Gas. Out of 135 times, NATGAS closed lower 60.00% 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 58.52% with an average market move of -0.57%.
With four out of the other seven Commodity Markets closing lower today, the ones that stand out on the negative side are CRUDE losing -2.99% and COFFEE closing -1.21% lower. On the flipside the best performers have been SILVER closing 1.75% higher and CORN gaining 1.21%. Read more