Natural Gas Set to Repeat 2020 Pattern Despite Higher Injection
Satendra Singh | Apr 28, 2023 14:47
After a wobbly Thursday, natural gas futures look ready for a wild price swing before this week's close, as surging uncertainty over the near-term direction could push prices back to fill the weekly gaps witnessed by futures on Apr. 16th and 23rd.
Since Apr. 14, 2023, futures have established a behavioral pattern and, despite price swings, look likely to repeat the movement pattern that it adopted between Dec. 28, 2020 – Jan. 12, 2021.
Natural gas futures are hovering around the same levels at this time of the year as the spring season keeps the heating demand on the lower side, just before the increased cooling demand for summer.
Technically speaking, futures are showing some strength in the daily chart, despite surging selling pressure.
A breakout above $2.548 or a breakdown below $2.216 is likely to indicate the future direction before this week's closing.
On the other hand, the 9 DMA and 18 DMA have created a bullish crossover above the 200 DMA and that could generate a breakout soon.
Disclaimer: The author of this analysis does not have any position in natural gas futures. Readers should take a trading position at their own risk, as natural gas is one of the most liquid commodities in the world.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.