What If Natural Gas Closes Above $2.977?
Satendra Singh | Apr 30, 2021 01:26PM ET
The natural gas bulls look busy in the formation of their second base at $2.933 while the first one was at $2.744. Although the announcement of weekly inventory on Thursday came on the high side of expectations, natural gas futures were trading lower after the announcement. The US Energy Information Administration (EIA) that the total stocks now stand at 1.898 trillion cubic feet (Tcf), down 302 Bcf from a year ago and 40 Bcf below the five-year average.
I find that the overall trend is upward in a daily chart amid changing sentiments from bearish to bullish for the short term. I find that a breakout above $2.988 will confirm a breakout move on the first trading session of the upcoming week. And, the supportive zone will be from $2.848 to $2.889 on the lower side could generate upward swings during the week, starting from May 3, 2021.
I find that the weekly closing level will define the final trend for the upcoming week. I find that if futures close this week above $2.988, we will see a change in the trading range, in which the psychological resistance at $3 could turn into psychological support during the upcoming weeks.
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.
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