While analyzing the moves of natural gas futures, I find that the $3 level which used to be a psychological resistance turned into psychological support on Monday when the futures started the week with a gap-up opening.
Natural gas futures tested a high at $3.150 on May 17 and tried to sustain up to May 18 till 08:00 p.m. before the bulls and bears become active. Futures could feel some selling pressure from the levels which has been tested after a long time but could find strong support at $3.040 before a strong reversal.
Undoubtedly, the bears know that the bulls have already formed a strong base at $3 before moving upward. This shift has confirmed a psychological change that could create fear among the bears to cross the strong support at $3 in a short time frame. Natural gas bulls look too aggressive to test fresh highs till they achieve the peak of this season.
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.