Natural Gas futures price movement after the announcement of weekly inventory indicates a beginning of a decisive fight between bulls and bears at the level. I predicted in my last analysis about the formation of a bullish hammer which indicates a massive uptrend rally very soon.
Formation of a bullish hammer in Weekly chart is a clear indicates a sign of hope for the bulls on one side and on the other it is a clear warning signal for the bears to run upward immediately; otherwise it will become difficult for them to hold their shorts, once the natural gas futures price closes above $2.825 and then cross over $3.333.
Too many voices at the lower levels for another down leg movement always are perceived as a creation of a trap by the bears themselves. They start to link a weather pattern with climate change and propagate for more downward moves even on any short rally. This perception of linking a weather patter with climate change is completely wrong. We cannot escape from El Nino effect on weather which results in a delay of seasonal patterns from a long time. A delay in real winter does not mean that the winter season going to erode completely even before its arrival.
A sudden announcement of climate change may change the whole scenario completely. It will definitely make this uptrend in natural gas futures price stronger. An uptrend in natural gas futures price since February 22nd, 2017 have become more visible after the announcement of weekly inventory report that natural gas storage in the U.S. declined by 89 billion cubic feet in the week ended February 17, above market expectations for a drop of 85 billion cubic feet.
On analysis of the movement of natural gas futures price in different time zones, I find that a move above $2.888 will make this uptrend more strong very soon. Movement of natural gas futures price on February 24th, 2017 at 12:50:00 seems enough evident to support the continuity of the current uptrend. Then the bears will give a good boost to this move themselves by covering their shorts.
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.