E-mini Natural Gas Futures ( QG1! ), H4 Potential for Bearish Drop
Type:
Bearish Drop
Key Levels:
Resistance: 8.440
Pivot: 7.630
Support: 7.035
Preferred Case:
On the H4, the overall trend is still descending and respecting the ichimoku indicator hence we are bearish bias. The price is forming a shoulder head pattern hence price might drop from the pivot at 7.630, which is in line with the 50% fibonacci retracement and the neckline of the head shoulder pattern to the 1st support at 7.035, where the 100% projection , 161.8% extension sits.
Alternative Scenario:
Alternatively, the price could rise to the 1st resistance at 8.440, which is in line with the 61.8% fibonacci retracement and 38.2% fibonacci retracement
Fundamentals:
No major news.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.