Natural Gas futures price sharp fall on May 16th, 2017 was not an unexpected phenomenon, every upcoming fall or an up move always give some advance indications like too much warmness before a drizzle. I tried to point out this in my analysis, published on May 15, 2017 04:09AM ET. But, the feelings among the traders were too bullish due to their focus on lower production and rising exports. Secondly, the growing choppiness on May 15th, 2017 indicating a sudden move in advance. Although, heavy liquidation by hedge and commodity funds and they took the advantage of shift in weather forecasts reports as an excuse to book profit.
On analysis the movement of natural gas futures price in 4 Hr. Chart pattern, which I have already discussed in my last few analyses several time, on May 17th, 2017 at 0:03:40 I find the natural gas futures price to be in a consolidation zone but the quantum of volatility will remain too high. I conclude that the natural gas futures price may find good support first at $3.210, second at 3.147 and finally at $3.047 second strong support will see a good presence of buyers.
Perhaps, I have indicated this sudden downward move when I was writing my analysis, published on May 13, 2017 04:10AM ET where I pointed out a “Litmus Test Zone for the Bull”. Movement of natural gas futures price in the same chart pattern on May 17th, 2017 at 04:00:00 shows that the natural gas futures price even did not enter inside the “Good Trading Zone”, it just started a downward journey after touching the “Litmus Test Zone. (Chart may be seen in the attached PDF).
Have a Nice Trading Time.
