Natural gas-head and shoulders pattern
Clear bearish head and shoulders pattern for natural gas. The head and shoulders is a reversal pattern that can indicate a potential trend reversal from bullish to bearish. The pattern consists of three peaks, with the central peak being higher than the other two, resembling the shape of a head and two shoulders.
In the context of natural gas trading, the head and shoulders pattern typically forms during a prolonged uptrend, indicating a potential exhaustion of buying pressure and a shift towards selling pressure. The first peak represents the left shoulder and is formed as the price reaches a local high. This is followed by a retracement or pullback, where the price temporarily declines.
In the context of natural gas trading, the head and shoulders pattern typically forms during a prolonged uptrend, indicating a potential exhaustion of buying pressure and a shift towards selling pressure. The first peak represents the left shoulder and is formed as the price reaches a local high. This is followed by a retracement or pullback, where the price temporarily declines.
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