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Natural Gas: Psychological Resistance Turns Into The Psychological Support

BySatendra Singh
Published 02/18/2021, 04:21 AM
Updated 07/09/2023, 06:31 AM

The aftermath of winter storm Uri, one more winter storm, will affect many people in the plains and south and eventually the east as well on Tuesday. I find Oklahoma and Texas are the spots that just dealt with a winter storm still got a lot of power outages. Millions of people are likely to go without power for another day in Texas as a frozen power grid struggles to keep up with demand. More than a dozen people have died so far in the storm. There is no doubt that current weather conditions and growing demand for natural gas have turned the psychological resistance at $3 into psychological support; that could keep the current trend in natural gas intact.

I find that natural gas futures could test a new high, amid high volatility, above the level of $3.220. Immediate support for natural gas futures, in a daily chart, is at $3.164 and, the first target could be at $3.350, followed by the next target at $3.688 before testing the level of $4.
Natural Gas Future Daily Chart
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.

Latest comments

sir I think you know if all explorer unit change price band than 3.6 will be lower level but still they can't till Christmas 2021. and again it will come down startedand inventory builtup near future due to demand concern . so most probably March end to April 1.88 will be seen .
Dear Ms. Thakur, thanks for your valuable comments.  I find that the current freezing conditions from West Virginia to Massachusetts are in favor of natural gas bulls. Don't forget to read my next analysis shortly. You may subscribe to my channel 'SS Analysis' for the latest updates.
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