NG futures are trading at $2.889 on the 4-hour NYMEX timeframe, bouncing from $2.78 with bullish green candles pushing price back over the red MA near $2.83. The price is currently respecting the lower end of the descending white channel, as well as showing a bullish pattern from a Fibonacci confluence. The RSI has moved above 55 on the way up, indicating short-term momentum.
The higher-low structure continues to play out inside a short-term base, while the blue trendline offers modest support from below. On the upside, we are at the ceiling of the descending channel at $2.936. The volume has increased on the move up, indicating buying pressure. Above $2.81, the structure is more bullish, as it fights against the multi-week trend.
Trade Idea: Buy @ $2.889, Target $2.936, Stop $2.81.
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