Breaking News
Investing Pro 0
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started

Natural Gas: Selling Pressure Could Intensify Above Resistance Levels

By Satendra SinghCommoditiesFeb 05, 2023 16:01
ng.investing.com/analysis/natural-gas-selling-pressure-could-intensify-above-resistance-levels-151847
Natural Gas: Selling Pressure Could Intensify Above Resistance Levels
By Satendra Singh   |  Feb 05, 2023 16:01
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
NG
-0.59%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+0.14%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Undoubtedly, there is no official data on hedge funds pushing the natural gas futures to much lower levels, whispers are of a likely surge instead as traders have seen the lows hit by WTI Crude when it traded at minus $40 on Apr. 20, 2020.

WTI Crude Oil Futures Daily Chart
WTI Crude Oil Futures Daily Chart

Now the question is whether natural gas could behave in the same way or has it tested the lowest point of this year at $2.343 before the advent of a reversal.

Undoubted, whispers Crude futures regained normalcy the next day as the reversal was quite strong.

But in the case of natural gas futures, a reversal is not so easy as the rallies will be sold despite the change in momentum from bearish to bullish.

The same hedge funds could turn buyers from the lower levels at this time of the year as the winter season could take its toll any time.

Bullish Hopes

Traders are still long and could feel a few disturbing moments for bulls, but a reversal is still on the cards as the inventory announcement Thursday presented a withdrawal of 151 Bcf.

On Friday, Baker Hughes's total rig counts showing a decline from 771 to 759 could encourage bulls to remain in command.

Secondly, a powerful arctic blast swept into the U.S. Northeast on Friday, pushing temperatures to perilously low levels across the region, including New Hampshire's Mount Washington, where the wind chill dropped to 105 degrees below zero Fahrenheit.

Natural Gas Futures 15 Minutes Chart
Natural Gas Futures 15 Minutes Chart

Technically speaking, in a 15-minute chart, the natural gas futures hold at $2.377. A significant surge in selling pressure could result in a reversal if the futures close this week above the resistance at 200 DMA, which is currently at $2.478.

Undoubtedly, the opening of the first trading session of the week will confirm the further direction for natural gas prices as wild price swings could follow.

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 of the world.

Natural Gas: Selling Pressure Could Intensify Above Resistance Levels
 

Related Articles

Naeem Aslam
Oil Stable, Gold Shines By Naeem Aslam - Mar 17, 2023

Oil Oil prices are stable today after suffering significant losses as investors worried about the financial crisis's spillover impact. We are still not out of the woods, and it...

Natural Gas: Selling Pressure Could Intensify Above Resistance Levels

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email