Natural Gas: Reversal Starts Here
2022.12.29 06:37
[ad_1]
After a steep fall of more than 12%, the have finally found the bottom at $4.464 before a sharp reversal as the fear of getting trapped fear spreads among the bears as they have entered into oversold territory.
The bears could feel breathing difficulty at the bay amid hopes of changing weather patterns from warmer than nusualfrom Dec.28 – Jan.4 over the northern US, besides colder 20s in Northern Plains and 60s and 70s over the southern US and up the Mid-Atlantic Coast that could ease the demand.
I believe that weather patterns could take some toll. Technically the natural gas futures could sustain below inside this bearish zone for a long time as the upcoming inventory on Thursday could encourage bulls to turn aggressive at this point.
Natural Gas Futures 15 Minutes Chart
In the 15-minute chart, there are some initial signals for a steep price reversal to hit $5.094 before today’s close as the weather pattern around Jan.10 will close to seasonal.
On the other hand, the expiration of the January 2023 futures at today’s close is likely to contribute to wild price swings that could keep the bulls to remain aggressive till this weekly closing.
Natural Gas Futures 15 Minutes Chart
Since the natural gas futures started a sharp reversal on Dec. 28, bulls are filled with strong confidence after this bottom formation.
The prices could maintain the current bullish momentum after the inventory announcement that may continue up to this weekly closing.
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 in the world.
[ad_2]
