[Natural Gas February Futures Update] Every time NG encounters a speed bump (resistance), it decelerates, turns around, and reaches out to the nearest support for guidance. It takes NG a number of such feedback loops to get past one resistance. Such behavior is a characteristic of a corrective setup which is to simply ping-pong between key technical levels for many weeks before giving birth to a new impulse setup. An impulse setup generally arrives with a bang blowing through at least a couple of resistances confidently & effortlessly.
NG has receded from the neighborhood of the local resistance at 4.140-4.240 shared in the previous update (for FEB contract). The key support continues to remain at 3.320-3.495 (adjusted for FEB contract) and has triggered multiple rebounds towards the nearest resistance. Below this resides the larger degree key support at 3.030-3.150.
Overall, in the big picture, NG will need to operate above these supports in all pullbacks to continually challenge the local resistance at 4.140-4.240 followed by the key resistance at 4.430-4.580.
Overcoming the key resistance shall prepare NG to take on the larger degree (macro-level) conditions necessary to transition from the current corrective structure to the next impulse leg up. These conditions shall be posted in the event of a break.