NG Looks Ready To Behave
Satendra Singh | May 20, 2018 04:51AM ET
Despite the announcement of natural gas storage in the U.S. showing an increase of 106 billion cubic feet in the week ended May 11th, 2018, compared to forecasts for a build of 105 billion, Natural Gas futures moved upward from the level of $2.793 to $2.870 and settled at $2.837 at the weekly closing. The Natural Gas futures look ready for swinging move amid growing geopolitical moves along with updated forecasting models pointed to above-average temperatures covering most of the country through the end of May.
I would like to concentrate more upon the seasonal pattern, during the last weeks of May till mid July which results in unusual moves of Natural Gas futures in big swings amid growing volatility. Having a look at the historical moves of Natural Gas futures from last weeks of May to mid of July, the swinging moves become an essential part of this seasonal pattern. Amid such a prevailing geopolitical scenario, let us have a look at the recent moves of the Natural Gas futures during the last few weeks in the following daily chart of Natural Gas futures. We will find that the Natural Gas futures have come out of the downward range and are currently trading in a good consolidation zone during the last week. On synthesis of the movement of Natural Gas futures on the last trading session, I expect a gap-up opening on the first trading session of the Week of May 20th, 2018 followed by upward swings first. No doubt that these swinging moves may be downward too but a steep reversal will be the immediate reaction as overall trend will try to maintain above the positive trend line. I expect the following trading zone for the Natural Gas futures price for the Week of May 20th, 2018.
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