The formation of an Inverse Head & Shoulders Pattern is likely to complete before this weekly closing. There is no doubt that the weather model seems to be supportive for natural gas bulls.
According to Bloomberg reports, an ice storm sweeping across Arkansas and Missouri will bring snow to Washington by Thursday, and temperatures are forecast to be 30 to 40 degrees Fahrenheit (17 to 22 Celsius) below the normal through the central U.S. as frigid air spills down from the Arctic.
I find the upcoming inventory is likely to favor natural gas bulls to make a sustainable move above $3.166 that could form a strong base for natural gas futures above $3. On the other hand, weekly withdrawals could be more than expected levels that could push the natural gas futures above $3.288.
I find the immediate support for natural gas gutures is at $2.930 and, the next support will be at $2.888. I find that a weekly closing above $3.2 could continue to push futures towards a new peak. But, a sustainable downward move below 2.743 could keep them in the bearish zone.
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