NATURALGAS1! Natural Gas Futures have printed a strong bullish engulfing pattern on the weekly chart, emerging after a prolonged downtrend—a classic sign that momentum may be shifting in favor of the bulls.Pattern & Setup Analysis
The appearance of a large green candle fully engulfing the previous week's red candle signals growing buying pressure and potential trend reversal.
This move occurs at the end of a multi-week decline, making it a significant bullish reversal setup—especially when found after extended selling.
Trading Setup Logic
Traders watching this pattern often prepare for a trend change or a relief rally, with stops generally placed below the engulfing candle’s low to manage risk.
Upside targets may be set at prior resistance levels or previous swing highs as the price seeks to retrace portions of the earlier decline.
The highlighted box on the chart suggests a favorable risk–reward scenario: risk is limited by the recent lows, while potential reward stretches towards the next major resistance zone.
Strategy Consideration
Conservative participants may await further confirmation via higher weekly closes or a retest of the breakout zone before entering new long positions.
Aggressive traders could already be positioning long, betting on follow-through strength after a decisive reversal candle. Best Entry will be near to the stoploss, and it could come for retest on coming Tuesday, else day basis closing above 264.8 will also be an entry trigger considering the scenario.
Overall, the setup reflects a shift from heavy selling to growing buyer conviction—making the coming weeks critical for confirmation and follow-through on this bullish reversal signal
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Technical Chart Analyst - Focus on 🇮🇳 🇺🇸 Markets. Indices | Commodities | Crypto Currencies.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.