Investing.com - Financial Markets Worldwide
Black Friday Sale! Save huge on InvestingProGet up to 60% off

Natural Gas: Changing Trader Behavior Likely to Push Prices Higher

BySatendra Singh
Published 29/06/2023, 05:12 pm
NG
-

The behavior of natural gas traders, who were continuously ignoring the cooler or bearish weather announcements, just a few weeks back, resulted in keeping the price trend in favor of the bulls.

Despite increasing selling pressure, high pressure with impressive heat and highs of 90-110º F continues over the southern U.S., Texas, Oklahoma, and South West deserts, and is likely to keep the demand on the higher side as the recent weather data maintains an overall hot U.S. pattern for the next 15 days.

Selling was visible in natural gas futures during the last two trading sessions, despite an opening gap this week.

Traders are likely to continue to push futures to cross the significant resistance at $3 before this week's closing.

I would not be surprised if the futures continue to rally on an overall hot U.S. weather pattern and hold above $3.4 during the upcoming week - a U-shape recovery before this week's closing will provide the first confirmation.
Natural Gas Futures 4 Hr. Chart

In the 4-hour chart, futures are holding much above the 200 DMA after finding a breakout above this significant support on June 15, 2023, and maintaining a bullish channel despite increasing selling pressure.

A U-shape recovery is possible soon as the formations seen since morning continue to generate fresh buying as futures have found significant support at $2.648.

Moreover, a sustainable move above the immediate resistance at $2.767 will keep the trend in favor of the bulls.

Disclaimer: The author of this analysis does not have any position in Natural Gas futures. Readers should take any trade at your own risk, as Natural Gas is one of the most liquid commodities of the world.

Latest comments

Loading next article…
Install Our App
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.