Natural Gas Double Bottom?

Natural Gas may be forming a double bottom pattern.  We need a close above 1.847 for confirmation.  Upside target would be around 2.081.  This market has been in a strong down trend since its 11-5-2019 high.  So what exactly supports this double bottom pattern?

First, large traders are holding long positions in the 4+ years extreme range.  Small traders have recently been selling their extreme long positions.  Both are bullish.

Second, prices found support inside my fib cluster zone near the 361 combo.

Third, there is bullish divergence on the RSI.

Fourth, a bullish engulfing pattern formed yesterday.

Fifth, there is a seasonal bias for a mid-February to late April rally.

Finally, the lows found support from levels seen during 1999 and 2016 bottoms.

Next, if prices can indeed rally, then how high can they go?

First upside resistance zone is between 1.925 and 1.994.  This area contains a falling window pattern, monthly R1, and the 50 DMA.  If we can breach this zone AND take out the 2.025 level, then we will take out another swing high.  This will reverse the bearish pattern of making lower highs and lower lows.  This would put our 2.081 target within reach.  Once met, then we could see prices make a run at the volume at price resistance zone between 2.246 and 2.318.


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