Natural gas' base formation at $8.063 was completed this week as the bulls remain aggressive at this new launching pad amid a growing energy embargo.
The seasonal bearish sentiments constantly increase selling pressure on every upward move. Still, the bulls look too eager to go long on every dip as the weather looks in their favor due to increasing cooling demand.
Technically speaking, in a weekly chart, the natural gas found a bumpy move from the week’s low at $7.675 and hit the weekly high at $8.540 during this week. The prices felt some selling pressure at the top, but the overall trend still looks bullish.
In a daily chart, the natural gas has finally tested the base at $8.063 on May 18 amid increasing selling pressure but found good buying support below $8.175. On May 19, the natural gas started the day at $8.135 and still showed good strength to keep the price trend upward.
If the natural gas prices sustain above $8.063, even after the announcement of this weekly inventory, a breakout move could drag down the natural gas above $9.136 before this weekly closing.
No doubt that the volatility could remain higher till this weekly closing, but the overall trend is still intact as the weather could continue to support natural gas ahead.
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.