Range of 6-6.5 could stop gas prices from falling

27 june 2022 104
Ivan__Titov
Ivan__Titov

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Since its multi-year high on June 8, the price of natural gas in the US has already fallen by more than 35%. In addition to the general negative dynamics of financial markets, the quotes were seriously affected by the accident at the Freeport liquefied natural gas plant in Texas. From this plant, 15-20% of gas was exported from the USA, and now these volumes will remain on the domestic American market at least until autumn. The sharp increase in available volumes of gas led to a precipitous drop in prices, which continues to this day.

 

However, there are already several signs of an imminent rebound upwards:

1) The price came to an important range of 6-6.5. Here are the lows of the previous corrections in April and May, as well as the highs of October last year.

2) A reversal pattern, "doji star", has formed on the chart.

3) RSI has entered the oversold zone for the first time since December.

 

The first rebound target is 6.5. Then we can focus on the Fibonacci levels, the closest of them is 23.6% (6.85).

Ivan__Titov
Ivan__Titov

Listed among the best MarketCheese authors
3rd in the segment "Indices"
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