Natural gas futures are currently trading at a decisive juncture that could tilt the directional move to remain upward, despite the weather announcement for the normal than hot weather conditions could further delay cooling demand.
But technically, a sustainable move above the psychological resistance at $3 before the announcement of weekly inventory on Thursday could propel this move to neglect the stockpiles. If the natural gas futures sustain above $3.056 till this weekly closing, natural gas bulls could turn more aggressive during the upcoming week.
Undoubtedly, the natural gas futures have found a strong base at $2.889 that could continue to provide strong buying support shortly. But if the futures find a breakdown below this level, a steep reversal could push the natural gas futures once again above $3. I find that the current trend looks full of bullish sentiments that could encourage natural gas bulls to test $3.155 during the upcoming week.
The weekly closing level of natural gas futures could play a pivotal role in deciding the opening price level on the first trading session of the upcoming week that could generate a gap-up at the start of the upcoming week. I find that a formation of bullish crossover during this week could continue to propel bullish sentiments ahead.
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.