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TFC Commodity Trading Forum

March Nat Gas/Coming Back to Test the Lows *PIC*

March Nat Gas plunged in a wash out pattern and bounced back up to the falling 20ema in classic fashion. After stalling there price is now coming back to test the lows. "IF" price is building a base for a reversal this recent low must hold as support and a higher low before rallying again would even be better. This would be a typical double bottom test with positive divergences likely on many indicators. The next test would be clearing the recent highs at the 20ema and running up to next price resistance at 2.96 or even the downtrendline. This would complete the "W" pattern with a successful test of the low and clearing the recent high giving the price action a higher low and higher high. From that point odds would favor the upside or at least sideways price action for some time building a stronger base and not a continuation of the bear market. Until that occurs the pattern is still bearish.