Gas is holding above the neckline

To the current moment, gas prices have noticeably corrected from their summer high of 9.953. The fall has stopped at the level of 7.6, where the neckline of the “head and shoulders” pattern passes through. The oversold state marked by the Stochastic indicator also stands in a way of the further decline.

If passing down through the support level of 7.6 doesn’t happen in the nearest future, the final formation of the “head and shoulders” pattern will be cancelled, and gas might resume its growth with the first target on the level of 8.3.