Natural Gas: Bulls Could Be Gaining Momentum
2023.01.17 14:45
Since the start of this week, movements in indicate renewed strength among bulls since the recent low tested last Friday at $3.384.
As I write this piece, natural gas futures hit a high at $3.789, and a low at $3.639, which indicates that bulls could be gaining momentum after a massive bloodbath last week.
The struggle between natural gas bears and bulls has turned tough amid growing expectations for changing weather patterns from Jan. 26.
The commodity tested the lows of Jun. 2021 last Friday and maintained further movement in the same manner in Jan. 2023, which ensures a breakout move above $4.5 soon amid increasing wild price swings.
Natural Gas Futures Daily Chart
Technically speaking, in the daily chart, if natural gas futures sustain above $3.782 in today’s trading session, bulls could find a breakout above $4.042.
The second significant resistance for natural gas futures would seem to be at $4.485, which could be the next target for natural gas bulls to test before the weekly inventory.
On the other hand, if bulls do not hold the immediate support at $3.584, they could lose their confidence.
If natural gas futures continue to maintain slow and steady movement as they did on Monday, they could easily hit their next target despite selling pressure at every step.
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.
