Gas Market Overview (2025-08-16)

• Gas opened at $3.267 and surged to $3.513 before consolidating near $3.366, driven by a sharp midday spike.
• Momentum accelerated midday with a 10.5% jump above the 20-period moving average, then weakened in the afternoon.
• A large bullish engulfing pattern formed at the high of the day, followed by a bearish rejection into Bollinger Band contraction.
• Volume surged 18x during the morning rally but has since declined, suggesting potential exhaustion.
• RSI signaled overbought conditions above 70 after the $3.513 peak, now correcting below 50 into neutral territory.

Gas opened at $3.267 on 2025-08-15 12:00 ET and closed at $3.366 by 12:00 ET on 2025-08-16. The 24-hour high reached $3.513, with a low of $3.244. Total volume amounted to 531,841.6 units, with a notional turnover of $1,838,195.00.

Structure and Key Levels

The 24-hour session saw a sharp breakout above $3.32 and a subsequent high at $3.513, forming a bullish engulfing candle during the early hours. This was followed by a bearish rejection near $3.513 and a consolidation phase into the afternoon. Key support levels appear to be forming around $3.41–$3.43 and $3.35–$3.37, with the 20-period moving average crossing above $3.39 by late morning. The 50-period moving average lagged behind, suggesting a potential pullback could follow.

Volatility and Momentum

Bollinger Bands expanded dramatically during the morning spike, with price breaching the upper band at $3.513 before retracting. The contraction that followed in the afternoon suggests decreasing volatility and may indicate a period of consolidation or a possible reversal. MACD showed a strong positive divergence early in the day, with a histogram peak around $3.495, followed by a bearish crossover in the late afternoon. RSI spiked into overbought territory during the morning surge and has since corrected into neutral range, suggesting potential for further consolidation or a test of key support levels.

Volume and Turnover Analysis

Volume spiked dramatically during the morning breakout, with the 001500 candle showing over 364k volume and $1.2M in turnover. However, after the high at $3.513, volume decreased significantly, suggesting a potential lack of follow-through buying pressure. The afternoon saw a gradual decrease in both volume and turnover, with price failing to retest earlier highs. This divergence could indicate weakening momentum and may raise caution about further upside potential in the short term.

Forward Outlook and Risk

Gas may test the key support level at $3.35–$3.37 before the 24-hour period ends, especially if RSI continues to retrace and MACD remains in bearish territory. A breakdown below this range could accelerate into the next Fibonacci retracement level at $3.293, based on the morning high of $3.513. However, the large bullish engulfing candle at the session high suggests a possible rebound remains in play. Investors should closely watch for a break above $3.45 to confirm bullish momentum.

Risk caveat: Sharp intraday moves and thin volume in the afternoon increase the likelihood of erratic price behavior over the next 24 hours.