Natural Gas: What Next?
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Today natural gas prices seem to be cool in comparison to the last two wobbly Wednesdays on Nov. 2 and Nov. 9 as prices are simmering amid a narrow range shows growing indecisiveness among traders.
No doubt, futures have stuck in a narrow trading range over the last few trading sessions as the bears are sitting above the 200 DMA, which is currently at $6.898, while the bulls are still below $4.777.
Natural Gas Futures Daily Chart
On the daily chart, the futures were still holding a significant support at 26 DMA, which is currently at 5.895, but growing exhaustion since this weekly opening, a breakdown is about to start.
Undoubtedly, a breakdown move could push the price below the immediate support at $5.787.
To understand the growing exhaustion in natural gas prices, let’s have a closer view at the monthly moves.
Natural Gas Futures Monthly Chart
On the monthly chart, exhaustion looks evident enough since the recent peak on Aug. 23 at $10.005, as the September and October showed weakness despite some buying support in October from the month’s low.
November’s monthly candle makes the exhaustion clearer as this month has witness heavy sell off during the first half, confirms this selling to continue during the second half of this month, as the developments in international front could resolve supply issues hopefully.
Natural Gas Futures Weekly Chart
On last week’s chart there was heavy selling which resulted in the formation of an exhaustive candle this week.
Undoubtedly this weekly closing could make the next directional view of the futures.
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