Despite constant bearish pressure, natural gas futures still maintain above $3.6, ensuring that the impact of a sudden shift in weather forecast could be disastrous for bears. Undoubtedly, fundamentals are weak due to lesser domestic demand and supply disruptions. But Mother Nature could deliver its final verdict before this Christmas with a sudden emergence of much colder weather from Dec. 26 - Jan. 1, 2021.
The indecisiveness of both the bulls and the bears could continue to swing natural gas futures amid increasing volatile moves during the upcoming week. Withholding lower towards $3 would need a bumpy move above $4.7, and sustenance above this could push the natural gas futures to test the next resistance at $5.151.
Undoubtedly, the opening level on the first trading session of the upcoming week will play a decisive role in defining the final direction that could impact the short-term trend. On the lower side, if the weekly opening finds a gap-down, the NG could try to defend the recent low of the last week. But a breakdown below $3.396 could drag down the price towards $3.137.
Winter's seasonal movement could see a sharp turn shortly with a sudden shift in the weather forecast for the end of December (Dec. 26 to Jan. 1, 2022.) Traders look ready to wait and watch for the upcoming weather forecast before moving forward during the upcoming week. The rollover of January NG contracts could be the advent of a rollercoaster ride during the upcoming week.
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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Natural Gas: Rollercoaster Ride Ahead Amid Sudden Shift In Weather Outlook
Published 12/18/2021, 04:41 AM
Natural Gas: Rollercoaster Ride Ahead Amid Sudden Shift In Weather Outlook
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