Natural Gas Bears Could Turn Hostile Above $7
Satendra Singh | Nov 22, 2022 12:43PM ET
After a reversal from the weekly low at $6.046 in the daily chart, it looks like natural gas bulls are trying to test the 200 DMA once again.
No doubt bears could turn hostile above the next psychological resistance at $7 as the natural gas futures enters this 'trapping zone' once again.
I find that bulls could be easily trapped above $6.065, especially if they try to cross $7.048 in today—as the wobbly Wednesday will followed by the Thanksgiving holiday, and Friday will have an early closing session.
Despite growing strength, wild price swings show a nosedive move soon as the bulls are currently walking the tightrope above $6.6 and a fall could bring prices to $5.6 before this weekly close.
Bears could trigger shorts at $7.048 with a Stop Loss at $7.284 (3.35%) to hit the target at $5.876 (16.63%) profit.
No doubt risk is there; but the risk-reward ratio looks impressive at 1:5.
The choice is yours. However, this is my view on the basis of the observations of the movements of the Natural Gas Futures and the news inflow during this month.
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.
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