Last summer the Power of the Pattern reflected a bullish INVERSE Head & Shoulder pattern was taking shape in Natural Gas (see bullish H&S pattern here) At that time NG was trading at $2.18.
In less than 6 months Natural Gas rose 90% following the post/formation of the right shoulder. Below is an update on Natural Gas-
CLICK ON CHART TO ENLARGE
Why did the 100% rally stop on a dime at (1) in the chart above? I suspect it was the combo of falling channel and Fibonacci 50% retracement levels. Now NG is making another run to break above key resistance at (2) above.
A break above this crossroads of resistance would be a positive and odds are high a new round of buyers would come forward!
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I think you have a bearish Head and shoulders about to start the downside of the right shoulder. ( first shoulder one more peak to the left)
Looking at a head and shoulder pattern over this long of a time frame you need to look at the over all high and low points for the Over all trend and ignore the smaller blips in between.
The whole chart is down hill.
Joe…At least I know one person got it!
Thanks Chris 😉
😉
this could cause a stink…
Sorry I just had to respond to the title.