Meanwhile, natural gas market continued to be influenced by the Nord stream 1 drama. It seems that flows will restart on Thursday but at a reduced capacity (30%). Russians Putin is blaming maintenance condition of turbines for the decreased supply on.
Looking at the hourly chart above, in a post yesterday I outlined how the 50% retracement at $7.49 stalled the rally yesterday with the subsequent price moving back down toward the 38.2% retracement at $6.97. Support buyers lean against that retracement level.
In trading today, the price has been able to extend above the 50% retracement level. Sellers were forced to buy pushing the price up to a high price of $7.92.
The current price is trading at $7.88 up $0.67 cents or 9.27% on the day. The next target comes in at the $8 level where the 61.8% retracement of the move down from the June 8 cycle high is found. That level also near a swing low from June 9 and near a swing high from June 16 (see red numbered circles on the chart above). However, if flows continued to be restricted, the trend to the upside should continue.