Since announcement of Natural Gas weekly inventory, on analysis of the movements of Natural Gas futures, in different time frames, I find them look ready for a reversal on January 18th, 2018 as weather model changes over the weekend were “incredibly bullish” as intense cold is expected this weekend; which may further result in changing weather conditions to cool down significantly with below-average temperatures over the next two weeks and the cold snap drifting eastward from the Midwest toward the East Coast. Secondly, growing export of U.S. liquefied natural gas during the upcoming weeks will negate the oversupply issue very soon.
On the technical front, I find that despite significant selling pressure at the level of $3.593 since the Natural Gas futures has already entered in second ‘uptrend zone’ ($3.286 to $3.656) after a gap-up opening on January 13, 2019. Natural Gas futures price has been finding continuous support at the level of $3.348 which makes this level too attractive to go long as the Natural Gas futures have already formed a “Golden Cross” in an hourly chart; which confirms the continuity of upward moves from the current levels. No doubt that a weekly closing above $3.567 will confirm the advent of upcoming breakout in Natural Gas futures. Changing weather will result in sharp upward move during the week ends. Let’s have look at the movements of Natural Gas futures in the following charts.
Natural Gas Futures Daily Chart – Expected Support And Resistance Levels
Natural Gas Futures 4 Hr. Chart – Expected Support And Resistance Levels
Natural Gas Futures 1 Hr. Chart – Expected Support And Resistance Levels
Natural Gas Futures 15 Minutes Chart – Expected Support And Resistance Levels