Natural Gas: Eruptive Upward Move
Satendra Singh | Feb 09, 2018 02:39AM ET
Since announcement of Natural Gas inventory movement of Natural Gas Futures is evident enough for eruption of an upward move from the level of $2.667 due to thick presence of bulls at this level. On analysis of the movement of Natural Gas futures price in different chart patterns, which I have noted in my last few analyses, I find consolidation phase seems to be over and has formed a good platform for Natural Gas bulls to move upward with good speed due to the following active factors:-
1. U.S. President Donald Trump’s policy is evident enough for booming oil and gas industry.
2. Poland has contracted for imports of U.S. liquefied natural gas (LNG), crude oil, and coal, and announced it will not renew a gas supply deal with Russia.
3. China has become a top customer of U.S. LNG.
4. All the bearish weather reports have already been factored in the price at the level of @2.747.
5. Natural Gas stockpiles are at the five-year’ lowest level amid the growing demand from China and other developing nations.
6. There may be good possibilities of a sudden shift in weather from warm to cold from February 12, 2018, which are normally returning winter bouts, will be an other encouraging factor for the bulls during this week.
7. US dollar has started to slip lower from recent top which will an encouraging factors for natural gas bulls.
Having a look at the current position of Natural Gas futures price on February 9, 2018 in the same chart patterns which I have already noted in my last few analyses, I find the Natural Gas futures price are available at the discounted levels for the bulls.
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