Natural Gas: Ready For Big Jolts, Before A Seasonal Peak
Satendra Singh | Jun 14, 2021 01:20AM ET
While analyzing the movements of the most liquid commodity of the world, one has to take into consideration seasonal momentum with changing weather conditions. Undoubtedly, the Natural Gas price fluctuation is demand-supply-equation-dependent, but a steep rise or fall results in massive sell-offs and shorts squeezing.
Natural Gas Futures becomes the friend of bulls after sustaining above the psychological resistance at $3. Seasonal price patterns matter a lot, but sometimes cyclical patterns overcome them. Mostly, Natural Gas traders have to go through a horrible experience with a sudden directional change of the Natural Gas Futures. Amid such conditions, momentum matters a lot while the price pattern takes a sudden turn.
Seems Natural Gas Futures have been stuck in the same indecisive conditions at the moment due to demand uncertainty linked to summer weather and the duration of maintenance at liquefaction facilities for US LNG (Liquified Natural Gas). Unusual swings in Natural Gas Futures could create trouble for traders during the coming week, beginning from June 14, 2021.
Natural Gas Futures have formed some platforms amid the currently prevailing uptrend. Undoubtedly, the resistances that the Natural Gas Futures have breached since January 2021 have turned into supports at the moment. Need of the hour is to concentrate on the levels which provide stiff resistance for Natural Gas Futures during the past few weeks.
I have marked some of the support and resistance levels in my in-depth analysis, presented in the YouTube video below, explaining the entry or exit with stop-loss levels. It could be that Natural Gas Futures start the week with a gap-up opening on the first trading session. Undoubtedly, a sustainable move will define the next platform for further directional moves.
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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