Facts:

• RSI [14] is 67.2
• The price is approaching the 423.6 retracement level of the Fibonacci channel
• The price is about 25% above the long-term regression line

Recommendation:

• Short position (Sell) on NATGAS.EU at market price
• Target price (Take Profit, TP): 76.80
• Stop Loss (SL): 95.50

NATGAS.EU (D1)

Source: xStation5 OPINION : Despite the strongly bullish momentum the contract price has shown in recent months, it has displayed a noticeable tendency to return toward the regression line (mean reversion) and closer to the middle of the Fibonacci channel range. The price is currently near the 423.6 level of the Fibonacci channel, which increases the likelihood of a correction.

Methodology and assumptions:

• The recommendation is based on technical analysis of the chart, in particular EMA averages, the regression line, and Fibonacci levels.
• The target level was determined based on Fibonacci levels and the regression line.
• The protective stop-loss order was set based on a favorable risk-to-reward ratio and positioning between key Fibonacci retracement levels.