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Natural Gas: $3 Likely a Pivotal Point for Bulls

By Satendra SinghCommoditiesJan 21, 2023 09:16AM ET
www.investing.com/analysis/natural-gas-3-likely-a-pivotal-point-for-bulls-200634572
Natural Gas: $3 Likely a Pivotal Point for Bulls
By Satendra Singh   |  Jan 21, 2023 09:16AM ET
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Analysis of natural gas futures in a weekly chart indicates that despite an 81-degree fall in natural gas prices in the last nine weeks amid warm weather conditions at this time of winter seems to be an unnatural move.

This steep fall has propelled fear among the bulls, as the selling pressure has increased manifold, as natural gas futures had found a breakdown below 200 DMA, which is at $3.754 in a weekly chart.

Now, 200 DMA has become a significant resistance for the bulls, as every rally finds a sell-off during the last three weeks despite repeated attempts by the bulls.

On the other hand, $3 is a pivotal point for both the bulls and bears this time, while the winters still have to pass through a significant portion of this season despite a messy weather pattern for the next six days.

Natural Gas Futures Weekly Chart
Natural Gas Futures Weekly Chart


Technically speaking, in a weekly chart, natural gas futures are currently trading below the 200 DMA, despite some reversal during the last few hours from the weekly low at $3.091 is merely an initial indicator of the thick presence of big bulls below the weekly close at $3.174.

Undoubtedly, the weekly opening levels will define the further intention of both the bears and the bulls as sustainable moves by the natural gas futures, above or below $3, will confirm the next direction for the natural gas prices.

On the bullish side, a gap-up opening above the immediate resistance at $3.535, followed by sustainable moves above this level, could result in a breakout above the 200 DMA.

On the bearish side, a gap-down opening below the immediate support at $3.101, followed by sustainable moves below this level, could push the natural gas futures to test the next significant support at $2.880.

Undoubtedly, a sharp reversal could generate a heavy buying spree by the desperate bulls despite the odd weather conditions.

I conclude that the whole focus will revolve around $3 during the first two trading sessions of the upcoming week as the weather could turn colder from Jan. 28 – Feb. 2.

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.

Natural Gas: $3 Likely a Pivotal Point for Bulls
 

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Natural Gas: $3 Likely a Pivotal Point for Bulls

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Comments (19)
Jim Wang
Jim Wang Jan 23, 2023 11:42AM ET
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Man, how to pay you get your report elailer before your release? It is 100% wrong and we can make more money if we use it properly :)
znao sam
znao sam Jan 23, 2023 11:38AM ET
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This guy is rullet 🤣🤣🤣🤣🤣🤣🤣
Phong Nguyen
Phong Nguyen Jan 23, 2023 10:24AM ET
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Undoubtedly, absolutely This guy has the thickest skin of all AnalAss out there. Pumping out wrong guesses daily and keeping on doing it daily, despite of all comments came in to pointing out he was and is out of the lines for 99.99% of the time. I was wondering how he got this job and keeping it after these years ?
Niva Spin
Niva Spin Jan 23, 2023 7:18AM ET
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LOL now that he is bearish it is time to buy
Trading Trade
TradingTrade Jan 23, 2023 7:18AM ET
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he is bullish, that is the problem
Andre Badenhorst
Andre Badenhorst Jan 23, 2023 3:40AM ET
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I Am Convinced You Have Absolutely NO IDEA!
Crim Jamer
Crim Jamer Jan 23, 2023 2:45AM ET
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I considered bullish fundamentals, but a contrarian indiactor (author) showed up, and i'm confused.
Jan 23, 2023 2:43AM ET
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I bet when ur finally right you goin crazy huh?
Shahinshah Ab
Shahinshah Ab Jan 23, 2023 2:40AM ET
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yours article all wrong
Ron Somma
RonSomma Jan 22, 2023 8:57PM ET
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dont buy natty - currently manipulated at best
Ron Somma
RonSomma Jan 22, 2023 8:56PM ET
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you are a paid Hedgefund agent, or?
Phong Nguyen
Phong Nguyen Jan 22, 2023 8:56PM ET
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I don’t think he’s not that good for them to hire him. This guy probably never know what he was talking about. He just guess and guess, but unfortunately his guessing never right.
Zaheer Khalfan
Zaheer Khalfan Jan 22, 2023 8:56PM ET
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Lol hell know! He works at the spice store in brampton ontario
 
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