Natural Gas: Frisky Friday
2022.04.08 18:31
Undoubtedly, natural gas looks extremely bullish on Friday after a breakout above the recent October 6, 2021, peak, when it hovered at $6.526. In this process of a steep run-up, the commodity could find some profit-taking, as the formation of double top could be the most common outcome technically.
Technically speaking, natural gas traders face a dilemma over the next move at this crucial juncture. Growing volatility makes it too tough to map the next directional move in the near term.
Natural Gas Futures Daily Chart
In a daily chart, natural gas show strong momentum above $6.350, but the formation of an exhaustive candle looks evident enough to show the thick presence of natural gas bears.
Undoubtedly, despite the formation of this exhaustive candle still, the natural gas bears are in fear of trapping at this point as the invasion of Ukraine has changed the demand-supply equation more in favor of bulls.
Natural Gas Futures 1-Hour Chart
In an hourly chart, three consecutive bearish candles show extreme selling pressure. But the natural gas futures are still holding above 26 DMA, which might be immediate support, currently at $6.271 could provide a strong reversal for the natural gas futures as the formation of bullish crossover is still intact. I find that the immediate resistance in an hourly chart is at 9 DMA, which is currently at $6.435, and above this, bulls could turn back aggressively.
In a 15 Minutes chart, the natural gas futures are trying to hold the immediate support at the lower end of the ‘Ichimoku Clouds’ which is currently at $6.362 from where the reversal could start any time soon as the bears look too eager to cover their shorts that could result in a short-covering rally after a breakout above $6.5 in today’s trading session.
Natural Gas Futures 15 Minutes Chart
No doubt that the weekly closing level will define a decisive role during the next week. I find the current geopolitical moves could continue to propel the current uptrend as the storage phobia among the western countries is visible clearly, even amid currently prevailing diplomatic moves by all countries. For more detailed analysis of natural gas futures, readers may subscribe to my YouTube channel.
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.
