Natural Gas Futures Display Short-Term Bullish Signals

Natural Gas futures are showing signs of potential short-term bullishness, according to analysis. Despite remaining within a downtrend since October 2023, Natural Gas (NG1!) has posted three higher lows since February 20, which could indicate a trend change. This pattern is similar to the Channel Up that started on April 14, 2023, following a sharp selling sequence.

Additionally, a Higher Lows Bullish Divergence is present on the daily RSI (Relative Strength Index) patterns. As long as the support level at the bottom of the Channel Up holds, analysts will remain bullish in the short-term, targeting the 1D MA100 trend-line at $2.050.

However, if the support level breaks, traders may turn bearish and target the Lower Lows trend-line at $1.400. The risk is considered low on both sides.