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Natural Gas: What's Next As $3 Turns Into A Psychological Support

BySatendra Singh
Published 05/19/2021, 02:19 AM
Updated 07/09/2023, 06:31 AM

While analyzing the moves of natural gas futures, I find that the $3 level which used to be a psychological resistance turned into psychological support on Monday when the futures started the week with a gap-up opening.

Natural gas futures tested a high at $3.150 on May 17 and tried to sustain up to May 18 till 08:00 p.m. before the bulls and bears become active. Futures could feel some selling pressure from the levels which has been tested after a long time but could find strong support at $3.040 before a strong reversal. 

Undoubtedly, the bears know that the bulls have already formed a strong base at $3 before moving upward. This shift has confirmed a psychological change that could create fear among the bears to cross the strong support at $3 in a short time frame. Natural gas bulls look too aggressive to test fresh highs till they achieve the peak of this season.

Natural Gas Futures 15 Minutes 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

You never post anything bearish
There you go Singh.. i don't have to prove anything.  You are the proof itself, another wrong prediction, but keep up the good work.
Time is a very valuable asset, maybe you should just stop it... get some help Singh But I admire you Singh... remind me of ''the little engine that could''
I would say that " that little engine who couldn't " kept going in circles as it had no clues.
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