Natural gas futures seems ready to retreat after testing the strong psychological support of $2.888 third time in a 4 Hr. Chart makes the buoyancy of a shorts covering rally more visible very shortly. Movement in the oversold zone shows the absence of sellers beyond a certain level.
Shifting weather announcements play important role in defining the directional moves mostly. But beyound a certain level on either side the natural gas futures price always be ready for a fast reversal without warning, especially at the time when every trader starts to think in the same direction. And suddenly, a Fat Finger does it work on finding an excuse which may be the announcement of impending inventory or a little change in weather announcement, then all the fundamentals and technical equations seems to end.
On analysis of the movement of natural gas futures price in different time zones, I find that the natural gas futures price at the current level seem ready for a rapid short covering rally which will pick up good speed after a sustainable move above the level of $2.934. I find the limited downside from the current level makes this phenomenon more prudent to be taken care of, especially near the impending inventory announcement day.
I find the movement of natural gas futures price in the same 4 Hr. Chart Zone, defined in my last Analysis "Natural Gas - Infiltration In Oversold Territory Seems Too Busy To Roast" evident enough to move well on the defined path ahead. Movement of natural gas futures price in the same 4 Hr. Chart on August 2nd, 2017 at 09:40:00 proves the strength of the current.
I advice all the readers to keep their position strictly with stop loss orders and specific targets.
Have A Nice Trading Time.
