Since my last analysis of natural gas, I find that natural gas futures seems to reflect liquidation pressure due to changes in weekly withdrawals to weekly injections. No doubt that the cold weather continued to retreat during this week but at the same time, warmer conditions began to impact energy demand.
As I noted, that above $2.717 will provide strong supports. No doubt that natural gas inventories created a gap down but the sustainable move since then has not only filled that gap but also enhances the possibilities of a swinging move from current levels as the natural gas seeks support at current levels. Natural Gas futures may find a clearer indication from next week's opening levels. A weekly close above $2.748 will result in a gap-up opening on the first trading session of the upcoming week.
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