Natural Gas Sees Bullish Turnaround as Technical Signals, Strong Demand Converge
Satendra Singh | Nov 29, 2023 17:45
Since I wrote my last analysis on Oct. 8, 2023, Natural Gas Futures remained in bearish territory after the formation of head and shoulders pattern and tested a high at $3.623 on Oct. 31, 2023.
After testing a low on Nov. 28, 2023, the commodity found strong buying support above the 200 DMA, currently at $2.626 in a Daily Chart, confirms the advent of price reversal from the current level.
Technically speaking, the formation of ‘Abandoned Baby’ looks evident in the daily chart looks enough for a move by the natural gas futures could test a level above $3.2 in short term.
Fundamentally, frosty air lingers across much of the US this morning w/lows of 0s to 30s for growing demand. Temperatures will warm to near or above the normal over much of the US late this week through next week, with highs of 30s to 50s across the northern US and 50s to 80s across the southern US for light to very light demand, according to natgasweather.com.
Jan’24 natural gas prices curiously rallied to $3 early yesterday, potentially due to Dec’23 expirations, then plunged during the day after further warmer trends and a much warmer vs normal pattern for Dec 2-12 were too much to ignore.
If natural gas futures close this week above the immediate strong resistance at $3.029, next week could witness strong buying to push the Jan’24 futures above the second resistance at $4.637 before Feb. 28, 2028, amid growing volatility.
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Disclaimer: The author of this analysis does not have any position in Natural Gas futures. All the readers should create any bid at their own risk as Natural Gas is one of the most liquid commodities in the world
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