On analysis of the movements of natural gas since the opening of this week, the bulls look too aggressive below the ‘Launching Pad’ at $8.063, as I explained in my last analysis.
This week, natural gas started with a gap-up opening at $8.160, hit the day’s high at 8.261, and is currently trading at $8.056 after testing the day’s low at $8.024 on Monday. Natural gas has tested the psychological support at $8 and looks ready for a bumpy move in today’s trading session to hit the immediate resistance at $.8.3.
Technically speaking, natural gas could complete the confirmation candle above Friday’s Bullish Hammer in a daily chart, formed after a sharp reversal from the lows of $7.848 on Friday. The formation of a bullish crossover in the daily chart with 9 DMA crossing above the 26 DMA seems to be too encouraging for the bulls.
In the hourly chart, the natural gas has found sufficient support at 26 DMA after the formation of bullish crossover.
In the 15 minutes chart, natural gas is weak as its current position is well below the Ichimoku clouds. Still, a steep reversal is likely, and a sustainable move above the upper end of the Ichimoku clouds will confirm the advent of the next bumpy move above $8.3 in today’s trading session.
Natural gas has started to reverse after testing the day’s low at $7.954 and formed a bullish candle in the 15 minutes chart that confirms a steep reversal.
Disclaimer: The author of this analysis does not have any position in natural gas. Readers are advised to take any position at their own risk, as Natural Gas is one of the most liquid commodities in the world.