Natural Gas: Psychological Resistance Turns Into The Psychological Support
Satendra Singh | Feb 18, 2021 04:21AM ET
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.
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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