Tough Tuesday For Natural Gas Bulls

Natural gas futures started this week with a gap-down, as I explained in my last video on my first expected weekly opening levels.

Monday witnessed a monster move by the natural gas futures from the day’s low at $7.772 to the day’s high at $8.297.  

Undoubtedly, the commodity attempted to fill the opening gap but could not find a breakout above the immediate resistance at $8.3.

On Monday, the Australian Competition and Consumer Commission (ACCC) warned of a gas supply shortfall in 2023, prompting the government to consider whether to impose curbs on the export of liquified natural gas (LNG) for the first time.

On Tuesday, natural gas prices tumble-down as the selling spree was quite strong to erase Monday’s gain.

Undoubtedly, this selling spree continues as the United States and China could face a confrontation on the Taiwan issue on Tuesday as the U.S. House of Representatives Speaker Nancy Pelosi is set to visit Taiwan.






Technically speaking, in the daily chart, despite the formation of a bearish candle, natural gas price is still trying to sustain above the upper band of the ‘Ichimoku Clouds’ but could continue to move down.

I find that a sustainable move below the upper band of ‘Ichimoku Clouds’ could push the Natural Gas Futures to test the lower band, currently at $7.412. I find the Natural Gas Futures could find a base at $7.325 before the advent of a steep reversal tonight.

I find that the Natural Gas Futures could retest Monday’s high as the weather is still supportive for the bulls, and the changing geopolitical moves could keep the price trend bullish amid growing volatility. Undoubtedly, big price swings could continue till the announcement of weekly inventory this Thursday.

Friday, the Natural Gas Futures could finally take a decisive move as the hot high pressure will expand to include almost the entire United States late in the week into next week with highs of the 90s and 100s besides 80s near the Canadian border.

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.