The natural gas 1 hour chart analysis shows that future prices still seem to maintain a bullish trend by holding above $3.554. All moving averages in the 1 hour chart indicate supportive signals. There are no signs of exhaustion in the chart.
After crossing over its third resistance at 3.512, as I mentioned in my November 28th weekly forecast for natural gas, futures prices will try to move upward.
Every upward move may create some distorted reflection of profit booking at every new peak as a beginning of reversal. However, I would not advise anyone to create fresh shorts till the prices start going downward with a slow downward trend and then confirmation of the beginning of a reversal. Second, the low inventory announcement on December 1st and growing heating demand for natural gas will be supportive for future prices in December and January.
I will try to explain how easily one can recognize the confirmation of a reversal in my natural gas articles in the near future. So, don’t be in a hurry and patiently keep an eye on the movement of natural gas futures price in the 1 hour chart. Now, the third resistance level of $3.512 will work as its first support level in this moving zone.
Have a Nice Trading Day!