Natural Gas: Tuesday’s Move Set To Form A New Base For Bulls

I feel too anxious to be tackling moves by the natural gas futures as an independent analyst who loves to predict what the technical formations tell. No doubt what the other analysts feel at the same time while I try to remain I feel too anxious to be tackling moves by the natural gas futures as an independent analyst who loves to predict what the technical formations tell. No doubt what the other analysts feel at the same time while I try to remain unbiased.

Despite growing noises for a downward move in natural gas prices due to warm winters, I kept myself aside as the natural gas futures showed a lot of strength due to the thick presence of value-seeking buyers during the last three months.

In a monthly chart, the natural gas futures formed three consecutive bearish candles during the last three months of 2021 – defined by the majority of the analysts as an advent of steep fall as the warm-winters could be the main reason.

Perhaps, I was the only analyst, waiting for this bottom formation at $3.542, and Nat Gas finally did in January 2022 what I was advocating at that time. Read my articles (here, here, and here).  

No doubt that human beings do require having a safe, clean and affordable supply of energy, particularly while the global economy is on the way to recovery after passing through the denting impact of the pandemic.

I find that the Natural Gas price-action looks ready to ignore seasonally generated demand as the supply disruptions make the natural gas prices remain strong during the year 2022.

I find that despite a steep short-squeezing on rollover of February contracts during January 2022, the natural gas futures witnessed some selling pressure during February and defined a base at $4.3.

No doubt this was an extremely volatile month, but March looks quite promising for the natural gas bulls after the formation of a bullish monthly candle which is still in the process above the 200-Day Moving Average, as I explained in my latest analysis.

Finally, I conclude that a sustainable move by the natural gas futures above $5.050 could be a new base for the upcoming months as the natural gas futures formed a launching pad at $4.040 as the natural gas futures have finally found a breakout above the psychological resistance at $5 on Tuesday.

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.