The growing export of U.S. natural gas to Europe is enough to turn weekly injections into weekly withdrawals very soon. Since submission of my last analysisnatural gas has reached a decisive zone that seems to provide a definite direction to the recent move since July 26, 2018.
No doubt that the latest news the United States and China are trying to restart negotiations to defuse a trade war between the world's two largest economies has caused a spurt of short covering ahead of the announcement of impending inventory. I find that this news will encourage natural gas bulls to take command in the coming weeks.
Let’s have a look at the current position of Natural Gas futures in the following chart, which defines different decisive zones for further action during the upcoming weeks. On analysis of the movement of Natural Gas futures, I find that a sustainable move above $2.888 before the inventory announcement on July 2, 2018 confirms the quantum of bulls’ strike.
Disclosure
1. This content is for information and educational purposes only and should not be considered as an investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital be involved which you are prepared to lose.
2. Remember, YOU push the buy button and the sell button. Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from an investment and/or tax professional before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.