Natural Gas: Bears Trapped Above $9.3
2022.06.02 17:36
While most of the traders were expecting the natural gas futures to slide further after a breakdown below $8.590 on May 31 but I could feel the thick presence of big bulls below $8.2 as I openly came forward with my idea to go long in my last analysis.
The natural gas futures tested a low at $8.153 on Jun. 1. After that, the prices reversed as this time, the day’s close was a little higher than the day’s low on May 31 at $8.125, just near the ‘launching pad’ at $8.64.
The natural gas prices are still maintaining an uptrend on Jun. 2 before the announcement of the weekly inventory. Natural gas is currently sustaining well above $8.888 – psychological support for the bulls.
There could be more volatility after the weekly inventory announcement. The weekly injection could be near 89 Bcf, the weakest injection during summer for quite a while.
Natural Gas Futures 1 Hr. Chart.
In an hourly timeframe chart, natural gas could continue the current uptrend and if it sustains above the 200 DMA post-inventory, expect high volatility.
Only a sustainable move below the 26 DMA, currently at $8.571, could keep the bulls in check. But a breakout above $9.011 could force the trapped bears to cover their shorts as the prices could hit the recent peak once again before this week’s closing.
In conclusion, if the price finds a sustainable move above $9.432, the bulls could hit the next target at $10.222.
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