Natural gas continues to struggle to defend the weekly support at $5.555 since the announcement of weekly inventory which was up to the expected level of injection of 63 Bcf.
The upcoming winters could generate an advent of weekly withdrawals from the mid of this month. And, weekly job data confirms that demand for natural gas could remain higher during the weeks ahead.
Since the last few trading sessions, the natural gas prices are stuck in a range from $5.555 to $5.864. The natural gas futures find a move out of this range it could lead to a breakout.
The weather during the next 6-10 days could cause volatility in natural gas prices during this week. Only a breakout or a breakdown out of this range could provide a definite directional move during the upcoming week.
This weekly closing level will matter a lot along with the opening levels on the first trading session of the upcoming week.
To conclude, a sustainable move by natural gas futures above $5.875 will confirm a breakout move. On the lower side, a sustainable move below $4.888 could increase selling pressure during the upcoming week.
I find that despite growing weakness, still a breakout above $6.2 could be seen during the next week if the natural gas futures find a sustainable move above $5.912 on the first two trading sessions of the upcoming week.
Disclaimer:
- This content is for information and educational purposes only and should not be considered as 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.
- 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.