Natural Gas: What If Weekly Opening Gap Is Filled Up Tonight?
2023.02.01 08:04
Natural Gas traded flat since a gap-down opening this week, showing the thick presence of bears and bulls at the current level.
No doubt both the bulls and bears have their reasons to fight for a decisive move as the messy weather reports are still on the way.
Natural Gas Futures Weekly Chart
Technically speaking, in the weekly chart, natural gas futures have shown the formation of a bullish candle that is still in the natal stage but could see some more bullish formation as the technical reversal is still on the cards.
Natural Gas Futures Daily Chart
In a daily chart, formations look quite indecisive as the buying continues at the current levels at this time of the winter.
Natural Gas Futures 15 Minutes Chart
In the 15-minutes chart, the natural gas futures are sustaining above the 200 DMA since this weekly opening looks ready to fill the opening gap in today’s trading session as the global commodities and equities will face extreme volatility soon as the Fed opens its cards tonight.
Undoubtedly if the natural gas futures fill this opening gap, bulls could move against all odds above $3.586 before this weekly closing, as the weekly withdrawal could be supportive for them this Thursday.
I conclude that the demand for natural gas could surge during the next five days before turning low as the cold air will retreat to the northern region this weekend.
Undoubtedly, the natural gas futures could not avoid a technical reversal from the lows tested this week despite the odds of demand and supply mismatch.
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.
