Natural Gas: Bulls Struggling Hard For A Definite Win
Satendra Singh | Apr 22, 2017 06:26AM ET
Natural Gas futures price movement in a narrow range what I termed as a “Fresh Buy Zone” in my last analysis, I find that the struggling bulls to be very near to a definite win. No doubt, that the weekly closing plays an important role in deciding the opening level on the first trading session for the forthcoming week.
On analysis of the movement of natural gas futures price in different time zones, I find that the natural gas futures price seems ready to break its first psychological resistance at $3.333 very soon, may be during the first two trading sessions of week of April 24th, 2017 because the current position of natural gas futures price since the announcement of weekly inventory last Thursday still seems to be strong enough for joining an uptrend voyage once again.
On analysis the movement of natural gas futures price after closing on April 21st , 2017 in the same 4 Hr Chart pattern, what I constructed in my last analysis, it seems evident enough to define that all the forthcoming moves in the days ahead will be more technically prone rather than being prone to weather related announcements.
Lastly, I would like to conclude that the movement of natural gas futures price before the last weekly closing; at a strong supporting level in 4 Hr. zone at 200 days moving average, where it continuously attracts buyers. In the first trading session for the week of April 24th , 2017, I find the natural gas price to find an opening at $3.166 and well may try to sustain its level within the “Fresh Buy Zone” for first two trading session.
If the natural gas futures price successfully maintains its position above $3.166 for first two trading session, it will definitely try to breach its first psychological resistance at $3.333 on or before inventory announcement on Thursday, April 27th, 2017.
Although, the chances of a gap down are bleak, even if the natural gas futures price opens at a little gap down on the first trading session of the week, the reversal of the price will definitely be too strong. I do not find the natural gas futures price to breach the downward level or up to testing the major psychological supportive zone from $3.078 to $3.022.
Have a Nice Trading Time.
Disclaimer: This analysis is purely based on the observations. I do not have any position in natural gas. One can create position in natural gas at his/her own risk.
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.