Natural Gas Seems Ready To Retreat From The Oversold Zone
Satendra Singh | Aug 02, 2017 10:20AM ET
Natural gas futures seems ready to retreat after testing the strong psychological support of $2.888 third time in a 4 Hr. Chart makes the buoyancy of a shorts covering rally more visible very shortly. Movement in the oversold zone shows the absence of sellers beyond a certain level.
Shifting weather announcements play important role in defining the directional moves mostly. But beyound a certain level on either side the natural gas futures price always be ready for a fast reversal without warning, especially at the time when every trader starts to think in the same direction. And suddenly, a Fat Finger does it work on finding an excuse which may be the announcement of impending inventory or a little change in weather announcement, then all the fundamentals and technical equations seems to end.
On analysis of the movement of natural gas futures price in different time zones, I find that the natural gas futures price at the current level seem ready for a rapid short covering rally which will pick up good speed after a sustainable move above the level of $2.934. I find the limited downside from the current level makes this phenomenon more prudent to be taken care of, especially near the impending inventory announcement day.
I find the movement of natural gas futures price in the same 4 Hr. Chart Zone, defined in my last Analysis "Natural Gas - Infiltration In Oversold Territory Seems Too Busy To Roast" evident enough to move well on the defined path ahead. Movement of natural gas futures price in the same 4 Hr. Chart on August 2nd, 2017 at 09:40:00 proves the strength of the current.
I advice all the readers to keep their position strictly with stop loss orders and specific targets.
Have A Nice Trading Time.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.