Natural Gas: Rebound in the Cards Before End of the Week?
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Movements in the natural gas futures contract since the breakdown below $3 indicate a sharp reversal could start soon after the inventory announcement tomorrow.
The commodity stayed under selling pressure amid messy weather announcements and finally hit a new low at $2.689 in today’s trading session. Last time, the natural gas futures hit this low on Apr. 26, 2021.
I believe today’s trading session could be a lone witness of this low as the natural gas futures look ready to bounce amid a growing possible February freeze shorty on Wednesday.
The weather data was colder trending for next week as frigid Canadian air impacts much of the northern and central US with frosty lows of the -20s to 20s.
Natural Gas Futures 15-Minutes Chart
Technically speaking, a sustained move above the immediate resistance at $3.2 could generate a fresh wave of buying before this weekly closing as the coming weekends could remain colder, which could drive a strong uptrend in natural gas prices.
No doubt, bears could try to repress every rally, but the bulls could turn aggressive once they find supportive weather above $3.767. Wild price swings could surge from Jan. 28 onwards as the bulls could turn aggressive once the natural gas futures hold above this level before this weekly closing.
I conclude that if natural gas manages to find a breakout above $3.158 in today’s trading, that would ensure the advent of a weekly gap-up during the upcoming week.
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