Natural Gas: Friday Could Be Frisky
2022.05.27 09:26
Natural Gas Futures hit a new peak of this season on Wednesday at $9.425 as the bulls were aggressive enough to enter inside the “Trapping Zone” – from $8.938 to $9.447.
This move not only formed the double top in the weekly chart but also attracted Bears to turn aggressive.
No doubt a sharp sell-off followed this move which pushed futures to close the day at $8.879.
There is a thick presence of natural gas bears above $9.405, ensuring a selling spree on every upward attempt by the bulls above this level and futures were slaughtered again on Thursday after the announcement of weekly storage numbers.
The post-inventory moves by futures were quite strong despite growing selling pressure. They shot higher and crossed yesterday’s high and hit the day’s high at $9.432 and currently trading at $9.216 which confirms the continuity of exhaustion in natural gas prices.
Futures could remain under pressure today as the weather reports indicate that a cooler than normal weather system with heavy showers and thunderstorms is slowly tracking across the east-central US with lows of the 40s and 50s, highs of 60s and 70s, including cooling much of Texas and the South into the more comfortable 70s and 80s.
Hot conditions are now confined to the Southwest, California, and parts of Florida with highs into the 90s. The southern and eastern US will warm into the 80s and 90s this weekend through early next week, including 100s over portions of Texas for stronger national demand.
Natural Gas Futures 1 Hr. Chart
Technically speaking, in an hourly chart, the current selling spree looks evident enough to continue today as futures could remain in the bearish tune as bears remain active with changing weather. No doubt the bulls could continue to give a tough fight as confidence has heightened after hitting fresh peaks on Wednesday and Thursday.
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