Natural Gas: Is a Reversal in the Offing?
Satendra Singh | Sep 08, 2023 00:51
Despite weak fundamentals, it seems that natural gas futures are indicating a price reversal that is likely to occur against all odds. The base formation at $2.502 appears to be near completion on September 7, 2023.
Undoubtedly, a bullish crossover in the 4-hour chart is on the way, and this weekly closing could result in a breakout move by the natural gas futures above the stiff resistance at $3.
The analysis of the price movement after today's stock inventory announcement, which was near the previous weekly build-up that could not stop the big bulls from commanding the current scenario, resulted in the advent of a buying spree at $2.5.
This is the lowest point of the current trading range, which is $2.5 to $3.5. Let’s look at the movements of the natural gas futures in the 4 Hr. chart.
Since the announcement of the weekly inventory, the current candle looks promising for buyers due to the favorable weather outlook.
According to the natgasweather.com,
“The southern & eastern US will be hot the next few days with highs of upper 80s to 100s as high pressure rules. The West and Midwest will be comfortable with highs of 70s and 80s as weak weather systems track through. The northern ½ of the US will be near perfect next week with highs of 70s-80s, while the southern US cools into the 80s and 90s as upper high pressure weakens. Hurricane Lee will track off the East Coast late next week. Overall, High demand the next few days, then easing late this weekend and next week to Moderate-Low.”
Disclaimer: The author of this analysis does not have any position in Natural Gas futures. All the readers should create any position at their own risk as Natural Gas is one of the most liquid commodities of the world.
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