Type:
Bearish Drop
Key Levels:
Resistance: 9.276
Pivot: 8.456
Support: 7.557
Preferred Case:
On the H4, as the DIF is crossing the signal line and MACD histograms are shrinking above zero, we have a bearish bias that price may drop from the pivot at 8.456 where the 61.8% fibonacci retracement is to the 1st support at 7.557, which is in line with overlap support and 50% fibonacci retracement .
Alternative Scenario:
Alternatively, price could rise to 1st resistance at 9.276 where the swing high is.
Fundamentals:
Western sanctions against major exporter Russia squeezed an already under-supplied global market causing a surge in crude and natural gas prices. Therefore, from fundamental view, the price of gas is rising, we should take note of this confliction with technical view.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.