Natural Gas: Steep Fall
Satendra Singh | Jan 01, 2019 09:18AM ET
In my last analysis, I mentioned the possibility that Natural Gas futures would make a steep move in either direction. Natural Gas futures preferred to be on the steep downward move after breaking the marked zone on the lower side. An extraordinary downward move has now pushed the Natural Gas futures into oversold territory. Let’s have a look at the movements of Natural Gas futures in the same chart on December 31st, 2018 at 16:00:00:
No doubt that the extraordinary bearishness overwhelmed the Natural Gas trading scenario, but the smart investors, who keep themselves aside from mass behavior look not to miss such an extraordinary opportunity to go long. They know the fluctuating behavior of the Natural Gas, which always remains the most liquid commodity of the World based on the emotional or psychological behavior of the masses more than anything else. This is the main reason that most of the analysts feel too reluctant to express their views about the possible directional moves of Natural Gas futures. Most analysts prefer only to talk about fundamentals and weather outlooks in order to avoid unnecessary criticism from amateur critics.
On analysis of the movements of Natural Gas futures in the same chart pattern “Territorial Zones,” I find that the Natural Gas futures are well inside the “Bulls Border,” which makes it possible that Natural Gas will move steeply upward from current levels soon. Let’s have look at the movements of Natural Gas futures in the same chart on the last trading session of 2018.
I find this downward move to push the natural gas futures price at the monthly support levels; which will provide a strong upward push to natural gas futures back up to the levels above $3.388 once again during the month of January 2019. I find the following trading zones for Natural Gas futures, with expected directional moves, during the January 1st – February 8th, 2019. Let’s have a look at the movements of Natural Gas futures in the following chart.
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