Pure Fuel Value Motion Setup: Is This It?

Pure Fuel, NG – Value Outlook:

• Consolidation/minor rebound possible in pure fuel,
• Whereas the intensive slide seems to be unfold, any rebound/vomit could also be capped for now.
• What is the outlook and what are the signposts to observe?

The sharp soar in pure fuel in current days is an indication that the bears are getting drained. Nevertheless, it’s too early to imagine that the worst is over.

Pure fuel fell to a 2.5-year low final week and rallied 35% in 4 periods, elevating the chance that the drop under rapid assist on the February-early low of $2.50 was a false break. Wanting on the extremely oversold situations on the upper time-frame charts, a brief time period consolidation/minor acquire might begin. For extra in a big-picture perspective, see “Pure Fuel Value Motion Setup: Is the Slide Overdone?” printed on February 21. See.

pure fuel 240 minute chart

Chart created by Manish Jaradi utilizing Tradingview

The short turnaround to crack the support-turn-resistance at 2.50 confirms that the downward strain is now beginning to fade. Pure fuel is now testing key resistance on the mid-February excessive of $2.65. A decisive break above would affirm that the rapid bearish strain has light. Subsequent resistance lies on the late January excessive of three.60.

pure fuel every day chart

Chart created by Manish Jaradi utilizing Tradingview

No matter how stretched the downtrend has been when it comes to the pace and extent of decline since late 2022, the growth within the current previous could also be a lifeless cat growth. Meaning retest of final week’s low can’t be dominated out. It’s because the injury carried out in current months could take time to get better – within the absence of a ‘V’ formed rebound, this might turn out to be a chronic base-building sample.

Nevertheless, as highlighted in a earlier replace, it can’t be denied that the slide could also be in its superior phases, particularly as pure fuel held sturdy at its 2020 low of round $1.45 final week. Help hit, additionally the goal of a serious double-top sample (2022 excessive) began late final yr.

— Written by Manish Jaradi, Strategist at DailyFX.com