Natural Gas: Rainy Weekend Could Drive V-Shape Recovery
Satendra Singh | Feb 25, 2021 07:28AM ET
After testing the high of $3.317 on Feb. 17, 2021, natural gas futures continue to remain under selling pressure due to the announcement of warmer temperatures on most of the east coast and cooler on the west coast. But the rainy weekend could turn the situation in favor of bulls. I find that the natural gas futures could take a sharp reversal from the current level as the bullish consolidation is very near to completion above $2.793.
Today’s inventory announcement could extend volatility that could push the futures towards the level of $2.744 that could provide strong buying support. The changing weather conditions could regenerate the bullish trend in natural gas futures.
Finally, I conclude that a sustainable move above $2.889 will confirm the continuity of a fresh uptrend, which could continue during the upcoming week if futures close this week above $2.965.
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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