Natural Gas: $5.555 Could Be A Strong Base For Next Breakout
Satendra Singh | Nov 05, 2021 06:37PM ET
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.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.