Downside Momentum Fading with Falling Wedge in Focus


Natural Gas, RSI Divergence, Falling Wedge – Technical Update:

  • Natural gasoline costs proceed aiming decrease in current weeks
  • But, draw back momentum has been fading, reversal subsequent?
  • Falling Wedge nonetheless stays the deal with the 4-hour body

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Weekly Chart – Is Momentum Fading?

Natural gasoline costs prolonged decrease this previous week, marking a third consecutive shedding streak. This shouldn’t be one thing out of the abnormal for the heating commodity as of late, with constant losses occurring for the reason that summer season of 2022. But a more in-depth look reveals that optimistic RSI divergence is beginning to emerge in this timeframe. As in, costs are setting new lows, however the indicator shouldn’t be. This is an indication of fading draw back momentum, which might at occasions precede a flip increased. Let us take a more in-depth look.

Chart Created Using TradingView

Daily Chart – Eyes on the February Low

On the day by day chart, costs are sitting simply above the February low at 1.967. This worth additionally represents the present 2023 low, in addition to the weakest level since September 2020. Much like with the weekly setting, this timeframe additionally shows optimistic RSI divergence.

In the occasion of a flip increased, the 50-day Simple Moving Average (SMA) may maintain as fast resistance, sustaining the draw back focus. Otherwise, extending good points locations the deal with the March third excessive at 3.027. Meanwhile, breaking beneath assist exposes the 23.6% Fibonacci extension at 1.696 towards the 2020 backside at 1.44.

Daily Chart – Eyes on the February Low

Chart Created Using TradingView

4-Hour Chart – Falling Wedge Continues Growing

Zooming in additional on the 4-hour view, the Falling Wedge outlined earlier this month continues brewing. So lengthy as pure gasoline stays inside the confines of this sample, the near-term outlook stays bearish. But, an upside breakout would open the door to a bullish reversal. That would place the deal with the 100-period SMA, which can maintain as resistance.


4-Hour Chart – Falling Wedge Continues Growing

Chart Created Using TradingView

— Written by Daniel Dubrovsky, Senior Strategist for

To contact Daniel, observe him on Twitter:@ddubrovskyFX

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