Natural gas has reversed lower after failing at the $3.400 resistance zone. The setup points to a further slide toward the $3.000 support level, according to a wave analysis from ActionForex.
Natural gas reversed down from the resistance zone at 3.400. That resistance zone sits at the intersection of two separate technical levels.
The first is a price ceiling that previously stopped major advances in March and June. The second is the 50.0% Fibonacci correction level of the downward impulse that began in January.
The downward reversal from that zone stopped wave iii of the sharp impulse wave C that began in August.
Given the strength of the 3.400 resistance and the clear daily downtrend, natural gas can be expected to fall further toward the next key support level of 3.000.
Source: ActionForex
Trading involves risk.
Risk Disclaimer
