Doji Sees Upside Follow-Through, Where to?


Natural Gas, Doji, Moving Averages, Rising Wedge – Technical Update:

  • Natural gasoline costs climbed for a second consecutive week
  • Upside follow-through after a Doji on the weekly in focus
  • The 50-day Simple Moving Average is holding as resistance

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Weekly Chart – Follow-Through After a Doji?

Natural gasoline costs aimed barely larger for the second week in a row. This adopted the emergence of constructive RSI divergence on the weekly chart. The latter is an indication of fading draw back momentum, which might at occasions precede a flip larger. A Doji candlestick sample additionally emerged earlier in April, additional including to the argument that the dominant downtrend since final yr is operating out of steam. Last week’s upside follow-through after the Doji may open the door to extending positive factors, putting the give attention to the two.422 inflection zone. Beyond that sits the 20-week Simple Moving Average (SMA).

Chart Created Using TradingView

Daily Chart – Eyes on the 50-Day SMA

The every day chart helps reveal the important thing impediment pure gasoline costs face within the week forward that would stall efforts to push larger. That is particularly the 50-day SMA, which held as key resistance final week, sustaining the dominant draw back focus. This is providing a near-term impartial outlook provided that costs have been unable to seek out directional momentum since falling again to the February low at 1.967. Closing above the 50-day SMA may supply an more and more bullish outlook, exposing the March excessive at 3.027. Otherwise, falling beneath assist exposes the 2020 backside at 1.44.

Daily Chart – Eyes on the 50-Day SMA

Chart Created Using TradingView

4-Hour Chart – Rising Wedge and 100-Period SMA

The 4-hour chart can provide a greater near-term image of what the heating commodity may face within the week forward. Last week, costs confirmed a breakout beneath a Rising Wedge chart formation, opening the door to extending losses. But, pure gasoline was unable to clear beneath the 100-period SMA, which strengthened it as key assist. Prices are idling across the ceiling of a former rectangle chart sample at 2.238. Clearing this resistance exposes the 61.8% Fibonacci retracement degree at 2.373. Otherwise, falling beneath the 100-period SMA could open the door to revisiting the February low.

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4-Hour Chart – Rising Wedge and 100-Period SMA

Chart Created Using TradingView

— Written by Daniel Dubrovsky, Senior Strategist for

To contact Daniel, comply with him on Twitter:@ddubrovskyFX

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