Futures for natural gas are trading at $3.220 on the NYMEX 2-hour chart. Green and red candles held up inside the blue ascending channel at $3.18 above the red MA. The swing low at $3.099 saw bullish rejection wicks on the upside, implying that buyers are in control on dips. RSI is around 52 and this points to a neutral-to-bullish market sentiment.
Based on the volume profile, we see that $3.12 is a strong support pivot area. On the Fibonacci extension, $3.229 to $3.260 is the next resistance zone. The market structure remains bullish above $3.099, and we continue to benefit from the clean ascending channel. We can see the pattern of higher highs and higher lows which gives buyers an opportunity to enter during the dip.
Trade Idea: Buy $3.220, targeting $3.260, with a stop at $3.12.
WTI Crude Oil Holds $69.64 – Blue Support Zone Defense on 2h