Natural Gas: Bulls Could Soon Return
Satendra Singh | Nov 30, 2022 01:29PM ET
Movements of the natural gas futures since Oct. 24 indicate an upward direction despite the wobbly month as the volatility remained higher, where 5-10% moves happened many times.
A plethora of reasons pushed the natural gas futures to hit the lows at $4.749 on Oct. 24 after testing a peak at $10.005 on Aug. 23.
Still, despite the short-term exhaustion natural gas has been facing since the last week of October, the long-term trend appears to be still intact.
I believe that the current weather pattern and the changing geo-political moves may keep these wild price swings during the first week of December, but the short-term exhaustion could end during the second week of December as the colder weather pattern will start between Dec. 8 – 11.
As I explained in my last analysis, a sharp surge in selling pressure could confirm further downside during the rest of the week if a breakdown below $6.834 plays out after the announcement of the weekly inventory on Thursday.
Moreover, Friday’s close will finally decide the further direction for the next week.
In conclusion, despite hopes for bullish trend during the second week of December, a cautious approach should be the first priority as the bears are still chasing a target at $4.7 amid growing volatility as the changing geo-political move could prevail over the demand-supply equation any time.
Get The News You Want
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.
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.