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Natural Gas: Wednesday Bullish, Thursday Might Be Extremely Bearish

BySatendra Singh
Published 09/08/2021, 02:52 PM
Updated 07/09/2023, 06:31 AM
NG
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Despite a steep upward move in an attempt to test the next psychological resistance at $5 on Wednesday, natural gas bulls look bound to overlook the factors that could soon come up in favor of natural gas bears. Upcoming inventory numbers on Thursday might be the first one. According to EIA, the expected injection level could be of 40 Bcf.

Secondly, some natural gas production setups could soon restart. I think that shortly the gas rigs could find normalization which will be an encouraging factor for natural gas bears to remain active, as natural gas has started to reverse after testing the psychological resistance.

The third supporting factor is valuation. At this price, investors could start evaluating the current price of natural gas, which starts looking too expensive to remain invested or to attract fresh investment at this time. The Hurricane factor could be a short-time factor for such a sudden move.

If natural gas is not able to hold above the level of $4.632 till the announcement of weekly inventory on Thursday, futures could find an advent of sharp sell-off from here. Wednesday’s closing could finally define the quantum and speed of the exhaustive move that could start on Thursday.
Natural Gas Futures 15 Minutes Chart
Natural Gas Futures 1 Hr. Chart
Natural Gas Futures Daily Chart
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.

Latest comments

The curse worked as usual
Report is big red still price going up May i know the reason
Inventory deficit is growing comparing to 5 year average.
yeh but that was gonna be the case regardless. So they rally for sale of it now
Back to bear camp?
Its way above the 4.632 level you mention in your post. So what do you think will happen now, are we going up  or down?
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