NG Continues Downward Channel, Descending Triangle Created Pressure

NG Continues Downward Channel, Descending Triangle Created Pressure

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Natural Gas has continued its downward channel after recently breaking lower from pressure created by a bearish descending triangle.

The continued downward channel has been ongoing since November 2014 as a relatively mild winter has reduced heating demand and increased natural gas storage levels just slightly below their five-year average.

Traders are looking for a strong breakout from this channel before considering any reversal. In the meantime, RSI levels of 29 to 31 have created short term trading opportunities. Traders should look for a retest of these RSI levels for short term gains.

Conversely, the MACD signal line has just crossed over, indicating more downside action to come.

To contact the reporter for this story, please email tim@natgasinvestor.com.

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