Natural Gas: Breakout Awaits
Satendra Singh | Apr 04, 2021 02:54AM ET
I find that the weekly closing of natural gas futures at $2.693 looks evident enough for a fresh breakout despite the first injection of this season with the emergence of a bullish candle during the week. An analysis of the Weekly formations in the last three weeks shows that a breakout could appear in natural gas futures this week.
I find that a bullish crossover formation in the daily chart confirms that natural gas futures could start the week with a gap-up opening and make a sustainable move of $2.744; this will ensure the continuity of an uptrend in natural gas futures. There is no doubt that weekly opening levels could be quite decisive for the further moves of natural gas because a sustainable move below $2.563 could push the natural gas futures into negative territory.
Finally, I conclude that natural gas futures seems to be repeating cyclical moves they showed during 2018 that resulted in the formation of a peak during that year.
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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