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Could Natural Gas Test $4.986 Before Today’s Close?

By Satendra SinghCommoditiesSep 17, 2021 01:37AM ET
www.investing.com/analysis/could-natural-gas-test-4986-before-todays-close-200602216
Could Natural Gas Test $4.986 Before Today’s Close?
By Satendra Singh   |  Sep 17, 2021 01:37AM ET
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Natural gas futures witnessed a sharp reversal after a pre-inventory move up to $5.594 and tested a low at $5.256. Undoubtedly, this could be the impact of profit-taking after the announcement of higher weekly injections. But, the volatility could continue since the threat from Hurricane Nicholas is over, and the US Gulf energy companies have increased the pace of restoration of production.

The pace of supply restoration has started to increase bearish pressure. Undoubtedly, production and supply disruption was the reason behind this steep rally over the last four consecutive weeks, and now the reversal could be equally sharp.

I mentioned the possibility of repetition of 2018's moves in my previous analysis when natural gas started its first breakout in June 2021. Once again, I would like to mention that similar volatile moves to the ones which took place after testing the peak in 2018 could continue now.

Natural gas futures witnessed a steep reversal of approx $0.658 after testing a peak at $5.934 during the second week of November 2018. They could follow this move before today's weekly closing and could test a low of $4.986 after testing the seven-year-peak of $5.644 during this week.

Natural Gas Futures Weekly Chart
Natural Gas Futures Weekly Chart

Disclaimer: The author of this analysis does not have any position in Natural Gas futures. Readers are advised to take any position at their own risk; as Natural Gas is one of the most liquid commodities of the world.

Could Natural Gas Test $4.986 Before Today’s Close?
 

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Could Natural Gas Test $4.986 Before Today’s Close?

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Comments (3)
Abdul Khaliq
Abdul Khaliq Sep 18, 2021 4:14AM ET
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How low it could go in next 2-3 months
Norbert Nagy
Norbert Nagy Sep 17, 2021 5:13AM ET
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Im not expecting fall to 5 dollars today, but of course can happen. We will see. Weekly chart saying, that NG is overbought. I think the price action need 1 - 2 red candles to cool down. Fundamentals will not change, tight supply will be here, but for new highs this need a deeper retracement. I think the support around 4,5 will be not broken.
Gábor Halász
Gábor Halász Sep 17, 2021 4:32AM ET
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OMG. New high coming.
 
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Disclaimer: This analysis is purely based on the technical observations. I do not have any position in Natural Gas. One can create position in Natural Gas at his/her own risk.
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