Natural gas steps higher again today after support holds on the early correction

Recall from the post yesterday, the price of natural gas pushed higher in late trading, extending above the 50% retracement of the move down from the June 8 high on the hourly chart above. That level comes in at $7.49. The high price reached reached $7.74.

In trading today the price corrected to the downside probably helped by the Nord Stream 1 opening. However, the supply is still only 40% of capacity. As a result, there has been a rotation back to the upside after the dip earlier in the day.

That move higher was also helped by traders holding support right near the 50% midpoint. The inability to move back below that level, gave the buyers the go ahead 2 push back to the upside.

Th high price today was able to breach the next key target at the 61.8% retracement which coincidentally came in right at the $8 level (actually $7.999). The high price squeezed to $8.04 before backing off. The current prices trading at $7.75.

What next?

It seems if you were to define the technical range, the 50% near $7.50, and the 61.8% near $8 are the low and high support and resistance now. With the price is trading near the middle, buyers and sellers are battling it out. The winners today with the dip buyers against the 50% retracement as they continue to hold the strongest hand. The sellers are hoping that the $8 level holds and the price is able to get back below the $7.50 level and stay below that level.

Meanwhile, in the crude oil market today, the price of WTI  crude oil  settling at $96.35. That’s down $-3.53 or -3.53%