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Natural Gas: Steep Fall

Published 01/01/2019, 09:18 AM
Updated 07/09/2023, 06:31 AM

In my last analysis, I mentioned the possibility that Natural Gas futures would make a steep move in either direction. Natural Gas futures preferred to be on the steep downward move after breaking the marked zone on the lower side. An extraordinary downward move has now pushed the Natural Gas futures into oversold territory. Let’s have a look at the movements of Natural Gas futures in the same chart on December 31st, 2018 at 16:00:00:

Natural Gas Futures 1 Hr. Chart - Decisive Zones

No doubt that the extraordinary bearishness overwhelmed the Natural Gas trading scenario, but the smart investors, who keep themselves aside from mass behavior look not to miss such an extraordinary opportunity to go long. They know the fluctuating behavior of the Natural Gas, which always remains the most liquid commodity of the World based on the emotional or psychological behavior of the masses more than anything else. This is the main reason that most of the analysts feel too reluctant to express their views about the possible directional moves of Natural Gas futures. Most analysts prefer only to talk about fundamentals and weather outlooks in order to avoid unnecessary criticism from amateur critics.

On analysis of the movements of Natural Gas futures in the same chart pattern “Territorial Zones,” I find that the Natural Gas futures are well inside the “Bulls Border,” which makes it possible that Natural Gas will move steeply upward from current levels soon. Let’s have look at the movements of Natural Gas futures in the same chart on the last trading session of 2018.

Natural Gas futures Daily Chart - Expected Territorial Zones

I find this downward move to push the natural gas futures price at the monthly support levels; which will provide a strong upward push to natural gas futures back up to the levels above $3.388 once again during the month of January 2019. I find the following trading zones for Natural Gas futures, with expected directional moves, during the January 1st – February 8th, 2019. Let’s have a look at the movements of Natural Gas futures in the following chart.

Natural Gas futures Daily Chart - Expected Trading Zones From January 1st - February 8th, 2019


Disclaimer

1. This content is for information and educational purposes only and should not be considered as an investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital be involved which you are prepared to lose.

2. Remember, YOU push the buy button and the sell button. Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from an investment and/or tax professional before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.

Latest comments

Natty is very hard to follow... Thanks a lot for all your analysis. Most of the time you are right. Those who read you and are upset should learn how to read English ...
Trade against his views, you will readily win.
Satendra Singh is on the money most of the time I look forward to his analysis always. However, I wish he can elaborate a little more on his Chart analysis
Mr Singh is correct when the market is bullish as he somehow seems to favour bullish bets most of the time! While i agree that there are causes for being a bull at $3 levels during winter a bullish stand when the prices ranged 4.7s is a bit of a stretch for even the most optimist
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