• Natural gas reversed from resistance area
• Likely to fall to support level 3.880
Natural gas recently reversed down from the resistance area lying between the key resistance level 4,160 (which stopped the previous sharp upward impulse wave (iii) at the end of July and the upper daily Bollinger Band). The downward reversal from this resistance area stopped the previous impulse waves 3 and (iii).
Given the strength of the aforementioned resistance area, the overstretched uptrend from March and the clear bearish divergence on the daily Stochastic indicator – – Natural gas can be expected fall further toward the next support level 3.880 (former support from the end of July – which stopped the previous minor corrective wave (iv)).