Natural Gas: Bullish Crossover Could Resist Bears Below $3.2
Satendra Singh | May 09, 2021 10:25PM ET
Natural gas futures, which has been continuing to maintain well above $2.957, seems to have set this immediate support level for some time now. As such, we could see a breakout move today that would breach the psychological resistance at $3.
I find that the natural gas bulls have formed a strong base at $2.955 to thrash bears shortly. Undoubtedly, a sustainable move of natural gas futures above $3.062 could generate a short-covering rally.
I believe that a bullish crossover formation in the daily chart ensures an uptrend in natural gas futures this week. Despite growing volatility, natural gas futures have regained much of its strength above $2.9 to enable it to proceed to test $3.165 shortly.
The average trading range for natural gas futures could remain between $2.5 to $3.2 till the end of this month, but, the overall trend could be in favor of bulls during the upcoming weeks.
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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