NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Natural Gas: Weekly Closing Likely to Make the Trend Clearer

Published 01/13/2023, 10:14 PM
Updated 07/09/2023, 06:31 PM
NG
-

Movements of the natural gas futures during this week indicate a thrust by the bulls and bears to keep the price trend in their favor, which was crystal clear with this week's candle.

Equal wicks on both sides of a small red body in this weekly candle have enhanced the importance of the weekly closing level on Friday.

Despite the double bottom formation, natural gas futures crossed Dec. 30, 2021 low at $3.536, and hit a low at 3.423 on Jan. 11, 2022, but remained above Jul. 2021 low at $3.393.

Technical Formations

Weekly Chart

Natural Gas Futures Weekly Chart

A steep fall in the prices during the last four weeks created uncertainty and increased the possibility of wild price swings during this week.

Despite a steep fall, initial signs of reversal are visible in the weekly chart as the body of this week's candle is still red and smaller but still holding because of significant support at 200 DMA, which is at $3.735.

If natural gas closes this week a little above the 200 DMA in today's trading session and the small red body of this candle turns into green could make the trend clearer.

And, despite the announcement of highly bearish inventory on Thursday, the prices are still reversing. This could make it likely for the small red body of the weekly candle to turn green before today's close.

Daily Chart

Natural Gas Futures Daily Chart

Since testing this week's low at $3.423 on Jan. 11, natural gas futures are trying to reverse on Friday after witnessing a wild swing on Thursday, indicating the presence of bulls at much lower levels.

The first resistance will be at 9 DMA, which is at $3.802, and the second is at 18 DMA, which is at $4.315. This level could turn the bulls aggressive if the prices start the upcoming week above $4.112.

15-Minute Chart

Natural Gas Futures 15 Minutes Chart

Natural gas futures are currently sustaining above the 200 DMA along with 9 DMA and 18 DMA, indicating that another wild price swing is likely before today’s close.

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 in the world.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.