The natural gas futures finally started the week with a gap-up of more than 7% as a Nor’easter brought rain, snow, and strong winds to the East this weekend, with freezing air on the backside of the storm, including freezing temperatures into the Southeast.
Monday, the prices maintain this gap in the wake of a potent winter storm that tracked across the East this last weekend. Much of the United States will experience a milder break late Monday up to the Wednesday as highs of 40s to 70s gain ground for higher national demand. A new frigid blast could be there in the northern plains.
The next Arctic blast will spread south and eastward late during this week with widespread lows of -20s to 20s into Texas and the South, and this will subsequently surge natural gas demand.
Natural gas could start one more upward move tonight. Its price-action could make a decisive move at 07:00 A.M on Monday. If the price holds above $4.821 up to 08:00 A.M., natural gas bulls could attempt to break above $5.158. A sustainable move could generate the next move to hit $5.5 before today’s closing.
On the lower side, natural gas could find immediate support at $4.420, and the subsequent support is at $4.211. Final support will be at $4.112, where a sharp reversal could occur. The volatility could remain higher after 10:30, but the overall trend will remain upward on Monday and Tuesday.
Technically speaking, the natural gas futures could attempt to test the next psychological resistance at $6 on Wednesday before facing some selloff. Undoubtedly, a bullish attempt could be there to breach the recent seasonal peak of Oct. 6, 2021. The natural gas futures are on the way to repeating the price-action of February 2014 in February 2022.