Natural gas prices have surged to an eight-day high of 2.75, triggering a weekly bullish reversal and surpassing the previous week’s high. This rally has also pushed natural gas above the 100-Day Exponential Moving Average (EMA) at 2.72 and the internal downtrend line, indicating a potential change in trend.
It is noteworthy that natural gas is on track to close above the 100-Day line for only the third time in 34 weeks. Previous attempts to break through the 100-Day EMA have been unsuccessful and led to pullbacks. However, the current rally marks the beginning of a fourth attempt, which usually has a higher chance of success.
The next crucial indicator of strength will be a daily close above today’s high at 2.79, followed by an advance above the previous swing high.
Valeura Energy Inc (TSX:VLE) is an upstream oil & gas company, with a clear strategy to add value for shareholders. The Company has a strong balance sheet positioning it for potential inorganic growth opportunities in the near/medium-term, and substantial longer-term upside potential through an operated deep, tight gas play.