Natural Gas futures price witnessed a surprise rally, driven by speedy short covering due to a little better than expected natural gas inventory on June 15th, 2017. An atmosphere of fear among the short sellers, despite the fact, that there was an injection of 78 billion cubic feet not a withdrawal.
Consequently, a gap down opening on the first trading day for the Week of June 18th, 2017 was equally irrevocable resultant of the second attempt of the bears to create this gap.
This unusual rally, created by the massive short covering, was evident enough to describe the quantum of fear among the Bears. Then, they tried to avenge the Bulls on the first trading session of the Week of June 18th, 2017. Now, the Bulls have their turn to take revenge from the bears. On analysis of the movement of natural gas futures price on first two trading session of this week, I find that the bulls have now created a bear trap at the current levels.
I conclude that the natural gas futures price to consolidate in the range from $2.960 to $2.881. But one important fact in this range is the strongest psychological support at $2.888 which has provided a good thrust to natural gas futures price historically. I, therefore, would like to describe this zone ($2.960 - $2.281) as a “Strong Bear Trap”, especially created by the Bulls very much in advance before the advent of every summer season by the Bulls to trap the Bears.
I find that the movement of natural gas futures price during the remaining period of the current week would be full of volatile moves as I have indicated an expected path for the remaining days of the Week of June 18th, 2017 in my previously describe 4 Hr. time zone for expalaining an expected moving zone for the week.
I find that the announcement of impending inventory on June 22nd, 2017 may be in favor of the Bulls along with forthcoming weather announcements during the weeks ahead.
Have a Nice Trading Time.
