Natural Gas Inventory Invented Exhaustion Waiting For 2nd Confirmation
Satendra Singh | Jun 09, 2017 03:32AM ET
Natural gas futures price movement since the announcement of natural gas inventory on June 8th, 2017, after eruption of massive volatile moves, seems to going through an exhaustion.. Both the bulls and the bears seem to be in rest for a while after a tough fight since last few days. Perhaps, the inventory has added first clue for the bears but still they seem to be waiting for the second clue, forthcoming weather announcement afresh. Bulls have also first set back on announcement of natural gas inventory but they are still seems to give equal fight at lower levels in hope of a fresh weather announcement in their favour.
On analysis of the movement of natural gas futures price in different time zones since the inventory announcement, I find the natural gas futures price is facing tough resistance now on every move ahead. Although, the natural gas futures price took a sharp bounce from $2.981 up to $3.048, but since then facing it has been facing a tough resistance at $3.048 which is enough evidence to show the thick presence of bears at the level of $3.048. Later, the announcement of mild weather is already in favour of the bears. Now, bears seem to short every single move here before going for a massive short selling on confirmation of weather announcement.
Technically, any sustained move below $2.088 will be beginning of a downward trend in near future. Now, traders will mainly focus the recently announced natural gas inventory which seems to negate weather announcement.
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