Although, El Nino Southern Oscillation (ENSO) conditions are currently in the neutral phase with the possibility of the return of La Nina later in the hurricane season. I find that any tilt in the weather forecast could change the direction and speed of the natural gas futures during this week.
Undoubtedly, the natural gas futures are currently at an edge of a seasonal breakout while major Hurricane starts in the Gulf of Mexico. A sustainable move by natural gas futures above the psychological resistance at $3 will be the first step toward the next seasonal peak.
I find that if the futures successfully defend the psychological support at $3 even after the announcement of a three-digit injection in today's inventory and close this week above the level of $3.149. That will confirm the next step upward move. Undoubtedly, there could be extremely volatile moves after the announcement of today's stockpiles, which could be from $2.977 to $3.149 and even higher. Need of the hour is to trade patiently after the announcement of inventory.
Natural gas futures look ready to start an uptrend from $2.977 to $3.548 during the upcoming week. A gap-up opening by the natural gas futures on the first trading session of the next week above $3.150 will confirm the advent of this uptrend.
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.
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