NG: Historical Zone Draws Bargain Hunters

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On analysis of the movements of the volatile moves of natural gas futures during the last few trading sessions, I blame the volatility prevailing in AUD/USD, which resulted in excessive indecisiveness in most of the commodities, including gold and natural gas. For more indepth analysis, subscribe my YouTube channel ‘SS Analysis’.

Today’s automated selling of Australian dollar against the yen sent it plunging to multi-year lows on a host of major currencies. At one point it was down 5 percent on the yen and almost 4 percent on the U.S. dollar, before clawing back much of the losses as trading calmed and humans took charge. This currency upheaval has pushed natural gas at the upper edge of ‘Historical Zone’ where the bargain hunters emerge.

On a monthly time frame, natural gas has, historically, seen a record-supporting zone, due to the presence of bargain hunters. Whenever natural gas has touched this ‘Zone’, they saw an immediate upward move. This time, this phenomenon looks like it will repeat as soon as the Australian dollar comes back on track; natural gas should benefit the most in dollar terms. Let’s have a look at the movements of natural gas at the upper edge of ‘Historical Zone’ in different time frames in the following charts.

NG: Historical Zone Draws Bargain Hunters

Monthly Natural Gas

NG: Historical Zone Draws Bargain Hunters

Weekly Natural Gas

NG: Historical Zone Draws Bargain Hunters

Daily Natural Gas

NG: Historical Zone Draws Bargain Hunters

4-Hour Natural Gas

NG: Historical Zone Draws Bargain Hunters

1-Hour Natural Gas

Disclaimer

1. This content is for information and educational purposes only and should not be considered as an investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital be involved which you are prepared to lose.

2. Remember, YOU push the buy button and the sell button. Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from an investment and/or tax professional before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.

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