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Natural Gas: Price Action Seems To Be Repetition Of 2018

By Satendra SinghCommoditiesMay 07, 2021 10:15AM ET
www.investing.com/analysis/natural-gas-price-action-seems-to-be-repetition-of-2018-200578386
Natural Gas: Price Action Seems To Be Repetition Of 2018
By Satendra Singh   |  May 07, 2021 10:15AM ET
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While analyzing the most liquid commodity of this world, I find that the efforts to define the probabilities of the next directional move become extremely difficult because an analyst can never define the direction of the waves; come out with collective human behavior.

This makes the natural gas move against all odds while the collective behavior starts ignoring the fundamental, generally define the direction of the natural gas price.

The second important thing is the recognition of a directional move. It defines the number of people who timely recognize the behavior of the natural gas price action because no analyst can summarize the cyclical patterns of natural gas futures in terms of principles of physics. These patterns are more influenced by the psychological behavior of a large number of natural gas traders.

This mindset defines the short and long-term support and resistance levels for natural gas futures. I find that currently, the natural gas futures are amid the psychological support ($3) and psychological support ($2.521). Undoubtedly, the natural gas futures are bound to take a buying spree from the levels like $2.777, $2.889, and $2.912 before attempting to breach the psychological resistance.

I find that the repeated attempts of natural gas bulls in the last few trading session have increased the possibilities of a breakout above $3.056 shortly. This aggressive move of natural gas futures could encourage big bulls to enter the scenario shortly. I find that a sustainable move of natural gas futures could ensure an eruptive move towards $3.2 during the upcoming week. Undoubtedly, this upward move will not without bouts of selling spree above $3.153 but the bulls could turn more aggressive if the psychological resistance at $3 turns into psychological support; as we have seen this change during the month of September 2018.

Natural Gas Futures Weekly Chart
Natural Gas Futures Weekly Chart


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: Price Action Seems To Be Repetition Of 2018
 

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Natural Gas: Price Action Seems To Be Repetition Of 2018

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Comments (4)
amit kumar
amit kumar May 09, 2021 10:34AM ET
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can be down on Monday
KC Cl
KC Cl May 08, 2021 1:34PM ET
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CDDs currently aren't even average, this is May not February during the Texas freeze...I think it goes down hard next week until we start seeing some heat...
Mox Mox
Mox Mox May 08, 2021 9:14AM ET
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Analysts, to be credible, should always add a target price or recommendation first and then give whatever explanation they want
Satendra Singh
Satendra May 08, 2021 9:14AM ET
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Dear Mr. Mox thanks for your suggestion.  I think every trader or investor define his or her target according to risk appetite.  Main emphasis is to be over the recognition of trend currently prevailing.  An Analyst can only provide you supportive data to recognize a trend.
Mox Mox
Mox Mox May 08, 2021 9:13AM ET
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Sorry, I didn't get the point, up or down?
Satendra Singh
Satendra May 08, 2021 9:13AM ET
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Nat Gas could start the upcoming week with a gap-up opening that could push Nat Gas to sustain above $3.056.  Only this will confirm the continuation of current uptrend amid growing volatility.  Thanks for your Comments.
R k Mad
BeRight May 08, 2021 9:13AM ET
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The analyst covers all the bases as he admitted it is not only him but all the NG analysts who cannot summarize the cyclical patterns of natural gas futures in terms of physics principles????? (Now, I am confused too). However, I must admit his English (unlike his videos) has improved and seems like he is presenting his views with caution and are not outrageous like before! However, his crayon-drawn charts are useless as before.
 
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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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