Natural Gas: Will Price Spike Continue Amid Fast-Shifting Geopolitical Outlook?
2024.11.19 02:22
Upon analysis of the move by the yesterday, I found that the natural gas futures are still under selling pressure, which is visible in today’s trading session.
The impact of Trump’s comeback will continue to influence natural gas prices in the US as the reversal of Washington’s policy in the Ukraine-Russia conflict is possible could change under Trump’s era.
Technical indication indicators look evident enough to understand the range-bound movements by the natural gas futures as the natural gas traders could remain focused amid growing tension in the Ukraine-Russia conflict and China’s move to control its stance on this issue.
On the Daily chart, despite a gap-up opening, after a strong move, natural gas futures are trading under pressure, and not able to hold significant support at $2.291 despite a 3% jump in today’s trading session.
Secondly, the formation of a bullish crossover, 9 DMA going to cross 20 DMA, and both had crossed the 50 DMA on November 8th, indicating a further spike that could push the natural gas futures to test the next significant resistance at $3.093.
In the Weekly chart, after the formation of an exhaustive candle, the formation of advance bearish blocks indicates the continuation of selling pressure, if not able to hold above the significant resistance at $3.093.
In the 1 Hr. Chart, 9 DMA looks to be an immediate resistance for the natural gas futures at $2.294 despite the formation of a bullish crossover by the 9 DMA and 20 DMA after crossing the 50 DMA, indicating the continuity of wobbly moves by the natural gas futures.
Undoubtedly, the significant support at 200 DMA, which is at $2.814 will provide a good opportunity to go long in natural gas futures for the short duration or day trading point of view.
Finally, I conclude that despite a significant surge in volatility, natural gas futures could remain inside the bearish territory, during this week if not find a breakthrough above the significant resistance of $3.093.
