Natural Gas: Monday’s Move Set To Trap Bears

On analysis of movements of natural gas futures since the start of the week, bulls look aggressive enough to attack if bears come out of their den at any level. Futures have tested the base at $4.513 before the natural gas bears could move towards the next support at $4.451.

Today’s move has formed a bullish candle in the daily chart that could keep the pace of bullish move intact during the rest of the week, as there could be strong demand from the arrival of chilly weather tracking across the US during the last weekend.

Secondly, the energy sector could feel the heat from the growing tension between the US and Russia over the invasion of Ukraine. Undoubtedly, the US doesn’t want to have a direct confrontation with Russia, but NATA countries are concerned, as some of the western and Asian countries are busy buying energy products from Russia, despite the imposition of sanctions.

Technically speaking, in a daily chart, futures have seen a strong pull back from the day’s low and still maintain a bullish candle. I find that if this daily candle turns to be a green bullish hammer before today’s candle, Tuesday’s daily candle could provide a confirmative candle.

In an hourly chart, despite stiff resistance at the upper end of the ‘Ichimoku Clouds, the futures look ready for a bumpy move before today’s closing as the current position of 9 DMA and 26 DMA looks evident enough to form a bullish crossover soon by crossing the 200 DMA.

In a 15 minute chart, the futures show a V-shape recovery despite growing selling pressure on every upward move as the value-seeking buyers don’t want to miss any buying opportunity till the futures maintain above $4.242.

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.