After the announcement of weekly inventory on Thursday, natural gas bulls and bears look indecisive as the hot weather looks quite supportive for the bulls while the bears look equally eager to hold driving seat.
Undoubtedly the high pressure will continue to rule the entire US for the next 7-days with highs of 90s to 100s for higher national demand besides 80s near the Canadian border. Temperatures will be hottest from California to Texas, and across the Great Plains with highs of upper 90s to 110°F while also hot with highs of 90s over major East Coast cities. Overall demand will remain strong during the upcoming week.
A sudden surge in natural gas demand due to increasing heat waves could keep the natural gas and power prices on the higher side during the upcoming week.
Technically speaking, in the daily chart, futures have formed a bullish crossover, which looks evident enough to get confirmation if futures find a breakout above the Thursday’s top as the price is still sustaining inside the ‘Ichimoku Clouds’.
On the lower side, a breakdown below the immediate support at $7.644 could push the futures to test the 9 DMA support at $7.
No doubt that the weekly closing level will finally indicate the further direction of the price movement of the natural gas futures during the upcoming week.
Finally, futures could see extremely volatile moves as both the bulls and the bears are full of fear at this price level.
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.