On analysis of the movements of Natural Gas futures in different time frames, I find that futures have gained enough strength after good consolidation at the current levels; and now look ready for a 'Blasting Move' before the weekly closing this week. No doubt that a lesser build-up in stockpiles this week may be announced on Thursday. This would encourage Natural Gas bulls to remain more aggressive during the last two trading sessions of this week.
On the other hand, any sudden downward move will only provide a good opportunity to bulls to go long; due to the thick presence of bulls below the current levels. Secondly, in a four hour time frames, 200 DMA will provide strong support to Natural Gas futures. In an hourly chart, all the SMA (20 & 50) and EMA (20 & 50) look evident enough for a sudden breakout from the current levels shortly.
No doubt that this time Natural Gas futures look ready to go against all odds, despite the sustenance of oversupply issue; but any positive development on the tariff trade war front will result in ending this oversupply concern.
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