While going through the comments of the readers in my last analysis, I found an amazingly curious inclination of one of my good evaluators to know my views on a pattern formation, what he finds as a bear flag. I tried my best to answer his query, but simultaneously he has motivated me to explain this psychological phenomenon for the readers who trade in natural gas futures price.
I would like only to say that mapping a natural gas futures price move is like playing a game, made for mapping the psychological perception of human beings. I would like to conclude here that what he perceived as a formation of a bear flag, many of his fellows may perceive it other way or I would like to say that a majority may see this formation as a struggling move to enter a new trading zone in an upper range. I would like to explain this game of perception with the help of some figures and charts below.
I would like to conclude that the best way to trade natural gas futures, one should give up anxiety first and then wait and watch will be the second and finally map the movement of natural gas futures price in different time zones and the effect of weather related announcements. If all the points one may to perceive correctly, then only he will be able to create a position with much more confidence.
I find most of the people seem to take decision on the basis of discussion going on in various forums instead of taking their own evaluation as their first priority.
On analysis the movement of natural gas futures price in all the above mentioned zone, I find the forthcoming impending inventory of natural gas on Thursday, April 6th, 2017 may create big volatile moves on both sides, but the overall outlook of natural gas seems to be more bullish and seems ready to enter a new trading zone in an upper zone, if it successfully crosses the encircled zone with a thrusting up move up to the weekly closing of the current week. Although, the weekly impending inventory may be favourable or not, but the forthcoming weather announcements seem to be more supportive for an up move of natural gas futures price. I find the strength of the current uptrend is still intact and seems to maintain its continuity in the days ahead.
Have a Nice Trading Time.
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.
