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Natural Gas: 2022 Likely to End with a Wild Price Swing

Published 12/30/2022, 03:26 AM
Updated 07/09/2023, 06:31 AM


Movements of natural gas futures since the announcement of the weekly inventory on Thursday indicates a wild price swing is likely on the last trading session of 2022.

Undoubtedly, both the bears and the bulls are struggling to prove their strength, which has constructed a strong base for the bulls to carry on buying sprees above the significant support at $4.428.

Since the weekly withdrawal this time was much larger than the 5-year average of -106 Bcf could keep the trend in favor of the natural gas bulls during the upcoming week after Jan.4, 2023.
 Natural Gas Futures 1 Hr. Chart
In a 1-Hour chart, the natural gas futures look ready for a breakout that could start at 05:00 a.m. in today’s trading session as the base formation seems to be over now.
 Natural Gas Futures 4 Hr. Chart
In a 4-Hour chart, the natural gas futures have formed a bullish hammer could find next confirmatory candle shortly before 06:00 a.m. today.
 Natural Gas Futures Daily Chart
In a daily chart, natural gas futures could find strong reversal from the current level. Only a breakout above the immediate resistance at $4.881 will confirm the continuity of a steep reversal.

Undoubtedly, a weekly closing by the natural gas futures above $5.5 could confirm the current uptrend as the natural gas futures could not ignore the arrival of the Winters at this point of time.

Best wishes to everyone for a happy and prosperous New Year!

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 in the world.

Latest comments

paid analysis
please have another prediction 5.2$, we need push it to 2.5$
His article is the best indicator. Trade against his view!
Yes i agree!
what a grt prediction
He predicted reversal at 4.7, at 4.4 and the price is 4.0 now.
When Jan contract was signed 3.59 ,why people forgets ?
NG is still bleeding.
He had earlier predicted 9 when everyone was dreaming of 2-3.. Give some timeframe to review gis prediction before accusing the writer
Its NG. The only thing guaranteed is wild swings.
Thanks
good analysis! the hedgefunds are still persisting but who knows: maybe they squeeze ;-)
Undoubtedly, you’re absolutely ridiculously absurdly WRONG all the time ! Go back to read your own words and check the outcomes, dude.
ehm. the analysis is good problem is the role of the hedgefunds creating that drop: they Decoder when to close their shorts but with the return of normal industry buyers lets hope for the best.
I agree
Satendar, why dont you talk about the manipulation of pricing thats going in. Fir a whole year prices were pushed up to unrealistic levels of $10 despite low demand and now when its peak of winter we have prices being forced to get to $3 levels
Nothing of what you wrote is true. Looks like price is heading to $3 levels this morning.
You must not understand how the gas cap works. NG is going back to normal prices
Let's go for it ! Thank you for a stroke of optimism amongst so much gloom....and Happy New Year to Satendra and all at Investing.com who do a great job !
I like!
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