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Natural Gas: Trapped Bulls Set To Escape

BySatendra Singh
Published 08/19/2022, 03:53 AM
Updated 07/09/2023, 06:31 AM
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Analyzing the movements of the natural gas futures during the past two weeks in the 15 minutes time frame, I find that bulls had been constantly maintaining an uptrend since August 8, 2022.

Undoubtedly, amid this upward journey, they were bound to overlook every fundamental and the demand-supply equation. Finally, big bulls attempted to cross the recent peak of June 8 but faced tough resistance on August 17 at $9.676.

Until August 17, the bulls were looking confident enough to continue an uptrend to hit the next psychological resistance at $10 as sentiments were getting support on the weather front.

No doubt that the bulls were bound to forget that they are already inside the 'Trapping Zone' that starts from $8.931 to $9.751 as they eye only their target despite the growing production of dry natural gas.

On August 18, the trapped bulls attempted their last escape to find a breakthrough above $9.650 but could not succeed and started to run downward up to $8.930. Here some of the reluctant bulls bumped back up to $9.427 but found it difficult to sustain above $9.224.
Natural Gas Futures 1 Hr. Chart
This downward run looks evident enough to feel their intention for finding a breakthrough bottom of this trapping zone on August 19, 2022.

The final escape of the natural gas bulls out of the trapping zone will be confirmed with a sustainable move by the futures below the 200 DMA which is currently at $8.633 in an hourly time frame.

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.

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