Natural Gas: Another Wild Price Swing on the Horizon

2023.01.12 13:51

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The wild price swing on Wednesday indicated indecisiveness among both bulls and bears.

Since testing a recent low at $3.423 on Jan. 11, natural gas futures recovered before the inventory .

Growing uncertainty over inventory levels could induce a significant swing in today’s trading session. The withdrawal level could remain on the lower side because of the warm weather at this time of year.

Price swings could ignore the inventory levels as the big bears look ready to take charge if the prices retest the recent low once again. I’m anticipating a sudden selling spree if the inventory announcement brings meager withdrawal.

On the other hand, if prices ignore the inventory levels and hold above $3.712, bears could start short-squeezing in the post-inventory period.

Natural Gas Futures Daily Chart

Technically, in the daily chart, two bullish candles formed at the bottom of this winter season indicate a reversal is likely to continue till this weekly closing.

Natural Gas Futures 15 Minutes Chart

In the 15-minute chart, the prices are hovering above the significant support at the 200 DMA. A supper bullish crossover has formed with 9 DMA and 26 DMA crossing above the 200 DMA.

I conclude that the readers must be aware that a big price swing is right around the corner.

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 in the world.

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