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Natural Gas Is In Danger Of A Pullback

ByAlexandros Yfantis
Published 11/10/2017, 10:50 AM
Updated 07/09/2023, 06:31 AM

Natural gas is trading around 3.20 in an upward sloping wedge pattern. I'll be bearish NG if we see the wedge pattern breaking down. The RSI has been diverging since the 3.14 top was made. I believe that although the longer-term trend might be to the upside, NG should pull back toward its 4-hour cloud support near 3.01.

4-Hour Natural Gas

First important support is at 3.19-3.185. Breaking below this level will trigger my sell signal. 3.14 is my next support. Breaking below that level as well will confirm my view for a push toward 3.01.

Natural Gas Support-Resistance Levels

So, natural-gas bulls need to be very cautious as this bull run will soon end.

Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.

Latest comments

I like your analysis, thanks for sharing it
its called winter get with the program
pizza de salami is right winter weather before winter is driving the price. technicals meets fundamentals
indeed, this is time of year to start looking at weather and shipping. few are still holding out for that traffic stopping shutdown. airlines and retail are booming going into holidays. few expect any delay. exports have maintained contracts. no interruptions there. so, question does ng start slip. know that ng doesn't slip in november if it starts a fall; it tumbles. and, of course, the unexpected artic blast that lasts for two weeks always a threat to double ng price. but wait, it's november 10 where i live. weather charts and so forth get more and more accurate with regard to winter as time passes. as you say, ng could very well tumble from here.
Wouldn't it just take the small extra drop and fill the gap too?
writer suggesting time of year is the focus. gap will be child's play should forecasts prove continuing warmer and no interruptions in shipping.
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