On analysis of the movements of natural gas futures in different time frames, I find that after filling the gap, created on Dec. 28, 2020; Natural gas bulls returned back with renewed energy to test fresh highs in January 2021.
The immediate resistance for natural gas futures is at $2.744, but a sustainable move above this resistance could encourage them to move towards their next target at $2.912; before the announcement of upcoming inventory this week.
There is no doubt that the withdrawal levels could trigger a short-covering rally; which could push the natural gas futures above $3.092. Natural gas futures could remain extremely volatile amid this uptrend voyage, but they look aggressive enough to break the psychological resistance of $3. On the other hand, the level of $2.617 will continue to provide strong support.
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.