The natural gas futures were driven up by bulls in the opening session today. This gap-up opening is what I expected.
The Atlantic storm Agatha seems to remain in focus as the remnants of Hurricane Agatha, a Pacific storm that hit Mexico earlier this week, was given a 90% chance of redeveloping into the first-named Hurricane of this year.
On Friday, futures were trying to form a base at $8.5 as the natural gas bulls were busy buying dips above the launching pad at $8.064.
In an hourly chart, the prices look strong enough after maintaining a gap since opening as the weather could remain in focus. The opening level of this week is the primary indicator of the current sentiment.
The formation of a bullish Crossover in a 15 minutes time frame could keep the current trend on the bullish side as the bulls look ready to find a breakout above the immediate resistance at $9.052.
Finally, I conclude that the futures could find a breakout move in today’s trading session after sustaining above $9.188. On the lower side, a breakdown below the immediate support at $8.292 could turn the trend in favor of the bears.
The volatility could grow more with more upward moves on Monday and Tuesday. On Wednesday, the natural gas futures could finally define a direction that could favor the bulls.
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 in the world.