Is Natural Gas Going To Test Peak Formation This Time?
Satendra Singh | Nov 22, 2017 12:44AM ET
- Natural Gas Futures price seems to be trading on the lower end of bullish zone.
- Natural Gas futures price seems to be in a good consolidation phase from $3.012 to $3.147.
- Natural Gas weekly injection has turned to withdrawal which seems to be a beginning of more withdrawals during the upcoming weeks.
- Growing export may boost the winter demand during this time.
- Natural Gas seems to be on the way to form seasonal peak during the upcoming weeks, if Mother Nature makes the winter more cooler this time.
On analysis of the movement of Natural Gas futures price in different time frames, I find the Natural futures price seems to be trading at a strong supporting level. If it tries to down below, it would not enter the bearish zone what I have pointed in the Charts below, but I would like to better describe this zone as a “Bear Trap Zone”, especially before a winter season. I find the Natural Gas futures price a good opportunity to go long between the range from $2.956 to $3.012, if any weather related announcement brings the price in this range.
Natural gas weekly injection as turned out to be a withdrawal last Thursday on November 16th, 2017 which indicates a bullish feed ahead for the bulls during the upcoming weeks. Mother Nature may make the upcoming winter season cooler than one can expect. No matter, what the changing weather models predict in coming days but the growing demand matter a lot during the upcoming weeks due to growing export from the Gulf of Mexico to other large developing nations like India and China.
I find the Natural Gas going to test peak formation during upcoming weeks soon, once it makes a sustainable move above $3.356.
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