Natural Gas: Despite Selling Pressure, Bulls Look Aggressive
2022.04.07 19:26
While analyzing the movements of the natural gas futures just before the announcement of the weekly inventory announcement, I felt the jerks of a hilarious price wave by the natural gas. Yes, natural gas has just turned the whole scenario immediately.
A daily candle near the formation of an exhaustive hammer just before the inventory announcement had turned into a bullish candle. Could it be a sudden bout of buying? Or it could be the expectation of a sudden surge in demand for natural gas due to increasing storage phobia after Russia invaded Ukraine. Maybe a plethora of reasons could be there to keep the price trend northward.
Natural gas futures daily chart.
The weekly closing level could be decisive this time, too, as it had become customary over the last four weeks. Still, the opening levels in the first trading session of the following week could be more decisive to define the further directional moves for the natural gas prices.
This weekend could feel the impact of geopolitical developments, which could be warmer or some cool-down hopeful. Still, the emergence of a spring storm extended from the Great Lakes to the Southeast today with showers, thunderstorms, and pockets of snowfall near the Canadian border, then tracking into the East Fri-Sun for a minor bump in demand.
Undoubtedly, the $6, which has just turned into psychological support now, could encourage natural gas bulls to form their next launching pad at $6.388 before breaking the next psychological resistance at $7.
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