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Natural Gas: Mother Nature's Impact Visible Before A Winters-Breakout

Published 12/10/2021, 12:54 PM
Updated 07/09/2023, 06:31 AM
NG
1.46%


Natural gas futures maintained an uptrend since December 7th, 2021, after testing a low at $3.659. Currently, the natural gas futures are looking strong above $3.883 after forming a base at $3.726 for taking bouncing moves during this week. This constant uptrend shows that mother nature has started to influence the movements of natural gas before winter knocks at the door.

Despite the repeated announcements for warm weather, weekly inventory withdrawals show that soon the winters could emerge as a sudden surge in demand. Industrial demand could also remain strong from Asia and Europe during this winter season. I find that if the Natural Gas Futures close this week well above $4.047, we could see a breakout move during the upcoming week that could push the Natural Gas Futures towards the next psychological resistance at $5 before testing $5.868.

I feel that this weekly closing will define the impact of the shifting turn of mother nature during the upcoming week that could keep the uptrend of Natural Gas Futures intact with supportive weekly withdrawals ahead.

Finally, I conclude that a gap-up opening on the first trading session of the upcoming week will confirm the strength of the bullish moves. On the lower side, a downward dip by natural gas futures well above $3.726 will provide an opportunity to go long for a target of $4.948.

Natural Gas Futures 15 Chart

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