Pure Fuel, NG – Technical Outlook:
- I just lately rebounded pure fuel costs Appears to be like remedial.
- A dominant double high sample is pointing to additional draw back in pure fuel.
- What are the important thing ranges to observe for?
Advisable by Manish Jaradi
fundamentals of pattern buying and selling
Pure Fuel Technical Outlook – Bearish
Pure fuel costs might have bounced again materially in latest days, however thus far it appears like a pause reasonably than a downtrend reversal, even on some intraday timeframes.
US pure fuel costs hit a one-week excessive on Tuesday regardless of forecasts for a warmer-than-normal interval till February 22. Plus the concept of rising fuel costs is that Freeport LNG’s export plant in Texas will quickly begin to take off. The corporate advised regulators final week that it’ll start transport extra fuel to one in all three liquefaction trains at its long-shuttered export vegetation within the coming weeks.
pure fuel 240 minute chart
Chart created by Manish Jaradi utilizing Metastock
On technical charts, the bounce nonetheless appears like a slide into pause/consolidation, at the very least for now (see color-coded 240-minute chart). For instance, the 14-period Relative Power Index on the 4-hour time-frame remains to be buying and selling beneath 55 (corrective rallies are capped round 50-55). Granted, the value motion remains to be unfolding and the bounce might nicely escalate, pushing the RSI greater.
pure fuel 240 minute chart
Chart created utilizing TradingView
Nevertheless, except pure fuel holds beneath final week’s excessive of $2.78, the 89-period transferring common on the 240-minute chart, and hard convergence resistance on the Ichimoku cloud cowl (at round 3.00), at the very least The trail of resistance is sideways. Beneath On the day by day chart, the pattern stays down (see color-coded day by day chart).
pure fuel day by day chart
Chart created by Manish Jaradi utilizing Metastock
Moreover, as highlighted in a earlier replace, a key double-top sample (2022 excessive) late final yr factors to an additional decline in pure fuel, presumably in direction of a 2020 low of round $1.45 ( see weekly chart). Fast help is finally week’s low of two.34, which is near the late 2020 low of two.25. Observe-up help is a horizontal pattern line from 1999 at round 1.45-1.50.
— Written by Manish Jaradi, Strategist at DailyFX.com
