Natural Gas: Bulls Look Ready to Bounce Soon
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Since this week’s opening, movements in natural gas futures contracts indicate a likely completion of the bottom formation, pointing toward a bounce soon.
After testing a new low in Monday’s trading session, natural gas futures are seeing renewed strength among bulls to push prices upward from the day’s low at $2.646.
Undoubtedly, bulls are struggling a lot despite heavy bearish pressure amid hopes of tilting weather conditions in their favor as the Texas oil regulator advises pipeline operators to prepare for severe winter conditions.
This seems to have filled bulls with renewed strength to come forward and command price movements as the worst of winter is yet to come.
Natural Gas Futures 15-Minute Chart
In the 15-minutes chart, natural gas futures look ready for a breakout move above 200 DMA, which is at $2.774 in today’s trading session.
A sustainable move above $3.258 will be the first confirmation that could be completed within the upcoming two trading sessions as the weather could turn chilly shortly.
On the other hand, any downward move above $2.664 will provide an opportunity for bulls to enter the scene in thick numbers once again.
Wild price swings could continue this week, but the trend could remain bullish amid growing expectations for changing weather as producers will have to keep prices up.
I believe a sustainable move above the initial resistance at $2.905 will provide a significant clue on further directional trends.
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