Natural gas Head and Shoulders Suggesting Price Crash
MCX Natural gas has made head and shoulders patterns on the weekly timeframe. And the two shoulders are overlapping. Sell confirmation is line breakout.
Recently, it has broken 200 moving average. If it shows closing price below the neckline and 200 MA consecutively, NG will fall nonstop.
X and Y are the formation’s size. Here is the value of x 100 and y 74. So, according to H&S formation, it can collapse up to 112 – 86.
Short-term targets: 170 – 168
Long-term targets: 146 – 136
Here are H&S, RSI, MA, and DMI throwing sell signals.