Natural Gas: What's Next As $3 Turns Into A Psychological Support
Satendra Singh | May 19, 2021 02:19AM ET
While analyzing the moves of natural gas futures, I find that the $3 level which used to be a psychological resistance turned into psychological support on Monday when the futures started the week with a gap-up opening.
Natural gas futures tested a high at $3.150 on May 17 and tried to sustain up to May 18 till 08:00 p.m. before the bulls and bears become active. Futures could feel some selling pressure from the levels which has been tested after a long time but could find strong support at $3.040 before a strong reversal.
Undoubtedly, the bears know that the bulls have already formed a strong base at $3 before moving upward. This shift has confirmed a psychological change that could create fear among the bears to cross the strong support at $3 in a short time frame. Natural gas bulls look too aggressive to test fresh highs till they achieve the peak of this season.
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.
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.