Commodities
Bullish Hammer in Natural Gas Points to Higher Prices
Natural gas prices formed a bullish hammer pattern on Wednesday after rebounding from a five-day low of $2.966, finding support at an initial confluence zone before buyers regained control.
The reversal above key support and the upper half of the day's range suggests that the session may establish a short-term low and test higher prices next.
An upside breakout and bullish reversal signal would occur above Wednesday's high of $3.058, providing the first indication that Wednesday's low may become a higher swing low.
The 20-day moving average, part of the confluence zone, was successfully tested as support on Wednesday, strengthening the case for a developing bullish shift if buyers can continue to build on Wednesday's reversal.