Natural Gas: A Turning Point

Natural gas bulls are looking aggressive enough to cross the first psychological resistance at $6 before July 6, 2022, as the southern part of the US will be very warm to hot with highs in the upper 80s to 100s.

Supply disruptions after the Freeport blast have turned the global politics to revolve around natural gas prices as the West and the East look busy defining their next geo-political moves only to influence their supremacy to show the efficiency in controlling inflation.


In a daily chart, futures have finally tested the seasonal bottom on Tuesday at $5.330. It could be a turning point for natural gas bulls as the volatile move was the second attempt by the natural gas bears after the first attempt on June 30, 2022.

Undoubtedly, prices look ready for a sharp reversal as demand could remain high for the next 7-days as the changing weather outlook looks quite supportive for the natural gas bulls.


In an hourly chart, the reversal shown by the futures looks sharp, which is likely to continue till this weekly closing if futures find a breakout above $5.767 in today’s trading session.


In a 15-Minutes chart, futures look ready for a bumpy move since the formation of a bullish crossover has been completed that could generate a short-covering rally once the futures find a sustainable move above the 200 DMA, which is currently at $5.732.

Finally, futures could continue the current rally after a sustainable move above $5.894. No doubt the volatility could remain higher during the subsequent three trading sessions, but the overall trend could remain bullish if futures hold above $5.767 even after the announcement of the weekly inventory on Thursday this week.

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.