Gas fuelling in for an expiry rally!
Observations:
• Price broke down below the horizontal support zone (~$3.12–$3.13), but the candles show strong rejection wicks which indicats sign of bear trap.
• Bears tried to push below support, but volume did not confirm sustained selling.
• RSI (bottom panel) is in a deeply oversold region and attempting to curl back up with a momentum shift possible.
• Previous swing lows around $3.10–$3.12 held, confirming demand.
Buy:
• Entry Zone (Buy): $3.12 – $3.15 (current levels)
• Stop Loss: Below $3.05 (decisive breakdown level)
• Targets:
• T1: $3.22
• T2: $3.28
• T3: $3.34–$3.38 (major resistance supply zone)
Logic:
• The false breakdown below $3.12 triggered short positions (bears trapped).
• If price sustains above $3.12–$3.15, trapped shorts may cover, fueling an upside bounce.
• Risk–reward here is favorable since SL is tight (~10 cents risk for 20–25+ cents potential gain).
