Natural gas seems to have entered the bullish zone in last Friday’s trading session on November 25th. It has to face selling pressure on every advance move, but the momentum will be bullish. Decline in last week’s inventory and the forthcoming winter’s heating demand will prove enough supporting factors for the bullish movement of natural gas.
One supportive factor is its current position above 200 DMA what it has achieved recently on November 23rd after attempting aggressively since its gap up opening on November 20th. Secondly, 20 EMA is trying to cross 20 DMA in upper direction and all the other moving averages are turning upward and seem to cross 200 DMA soon in coming days.
Range of the Natural Gas prices may be from $ 2.974 on the lower side to $3.503 on the higher side. One may fine find the following Support and Resistance Levels on the 5 Hr. chart during the week beginning from November 28th:
S1 – 3.038 S2 – 2.793 S3 – 2.869 AND R1 – 2.348 R2 – 3.411 R3 – 3.512