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Natural Gas: Base Formation Before A Breakout

By Satendra SinghCommoditiesMar 10, 2021 06:38AM ET
www.investing.com/analysis/natural-gas-base-formation-before-a-breakout-200566261
Natural Gas: Base Formation Before A Breakout
By Satendra Singh   |  Mar 10, 2021 06:38AM ET
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In normal circumstances, warm weather extends bearish sentiments for natural gas futures but, this time situation could be different with the growing export of LNG after export disruption due to freezing weather which jammed natural gas supply pipelines. The weather could remain much colder in Texas for the next two weeks. Although, the current price consolidation of natural gas futures seems to be quite confusing. But, I find that this consolidation seems to a base formation for a breakout move.

I find that the natural gas futures could test $3 resistance once again amid growing volatility. There is no doubt that a steep move above $2.889 could result in a short-covering rally before this weekly closing, followed by a sustainable move of futures above $2.948. On the other hand, only a sustainable move below the level of $2.593 could extend selling pressure. I find that the immediate target for natural gas bulls could be $2.777 before heading towards $2.889.

Natural Gas Futures Daily Chart
Natural Gas Futures Daily Chart


Natural Gas Futures 4 Hr. Chart
Natural Gas Futures 4 Hr. Chart


Natural Gas Futures 1 Hr. Chart
Natural Gas Futures 1 Hr. Chart

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 of the world.

Natural Gas: Base Formation Before A Breakout
 

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Natural Gas: Base Formation Before A Breakout

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Comments (7)
Sabai Sabai สบายๆ
Sabai Sabai สบายๆ Mar 15, 2021 7:49PM ET
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Hahaha.. thanks again. Please keep on posting these bullish news.
Sakhi Mansoor
Sakhi Mansoor Mar 15, 2021 2:51AM ET
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Why he always gives you the opposite analysis Because of him now I m in deep dig loss
Kumar Gyan
Kumar Gyan Mar 12, 2021 4:18PM ET
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Thanks for the analysis Satendra..very helpful
jack hammer
jack hammer Mar 12, 2021 4:01PM ET
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this dooe is solid gold
Sabai Sabai สบายๆ
Sabai Sabai สบายๆ Mar 11, 2021 9:15AM ET
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Thanks for your wisdom, you have been batting a 1000.. but on the wrong team.
Abdur Rahim
Abdur Rahim Mar 10, 2021 4:40PM ET
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Short with confidence. Amazing SS.
Saksham Kumar
sakshamghq Mar 10, 2021 8:24AM ET
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180-160 coming soon
 
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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.
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