On analysis of the live moves of natural gas futures on Apr. 28, 2021, I think that futures could take a decisive turn above $2.956; before targeting $3.056. The direction of the natural gas market is likely to be defined by the trader reaction above $2.988 that could generate a short-covering rally on Wednesday after a sustainable move above $3.
In the 1 Hour chart, the natural gas futures have been showing a consistent uptrend since Apr. 22, 2021. I find that this looks evident enough to ensures a blasting move above $3.056. I find that a drop than expected levels in US production on the upcoming Thursday could propel the current rally.
The main focus of the natural gas bulls is likely to remain focus around $2.744; as they have formed a base here in case of any selling spree by big bears while natural gas tries to test the psychological resistance at $3. The main trend is up according to the moves shown in the 4 Hour chart.
Natural gas could follow a range-bound trading pattern ahead between $3.056 to $2.551 till a decisive breakout before this weekly closing. Natural gas futures are currently trading on the side of bulls but extreme volatility could continue to chase the current trend till the natural gas futures make a sustainable move above $3.
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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