Natural Gas: Bear Trapping Starts Here
2022.06.26 08:26
Following the steep fall soon after the weekly inventory release on Thursday, NG futures were on their way back to the $8.5 level amid growing seasonal demand as the reversal started above the psychological support at $6.
Undoubtedly, selling pressure was still intact, but the natural gas bulls looked ready to trap the bears between the ranges of $6 – $7.
Natural Gas Futures 15 Minutes Chart
Technically, initial evidence indicated a sharp reversal before Friday’s closing, which could continue during the upcoming week as the power burns will continue to remain higher through the weekend due to widespread heat across the southern half of the US and light wind energy generation.
No doubt that the natural gas bears will continue to struggle during the upcoming week as the selling sprees could continue to appear with every upward move. But the current pattern looks bullish enough to continue buying on every downward rally ahead.
The changing geo-political events could continue to impact the movement of the NG futures during the next week as the bulls and bears are present in large numbers at the current level.
The commodity could find a breakout move on the first trading session of the upcoming week as the bears may start short-covering on Monday if NG finds a sustainable move above $8.3 soon after the weekly opening.
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