The price of Natural Gas hit a two-year trading high yesterday as extremely tight government supply of Natural Gas caused prices to advance past the $3.40 resistance level.
Traders and market veterans noted that this is very unusual for Natural Gas prices to be hitting new annual highs at this time of year as June is not usually a strong month from a seasonal perspective.
Natural Gas usually enjoys price ramp during the winter as heating is in strong demand. It is also noteworthy that two storms are currently raging in the Atlantic, which is also causing spikes in Natural cases. Weather experts noted a 10 to 20 percent of a cyclone forming over the next two-days.
At this juncture, the strong rally going on through the commodity space could also be a contributing factor to higher Natural Gas prices. The new infrastructure bill from the Biden administration is another possible bullish catalyst.
Looking at the technicals for Natural Gas, bullish patterns are forming, which is a generally an indication of further high prices. On an historical basis Natural Gas is a long way from the 2018 high, just under $5.00.
According to the ActivTrader platform some 87 percent of traders are bearish towards Natural Gas, meaning that only 13 percent of traders are bullish towards higher price.
With the sentiment bias still at extremely low level, I believe more losses remain possible, and we should expect the short squeeze in Natural Gas prices to continue.
Natural Gas Short-term Technical Analysis
The four-hour time frame shows that a large, inverted head and shoulder pattern has formed, and is warning of more strong near-term gains for the price of Natural Gas.
According to the overall size of this typically bullish price pattern Natural Gas prices could be about to rally towards the $3.60 resistance level.
See real-time quotes provided by our partner.
Natural Gas Medium-term Technical Analysis
The larger picture for Natural Gas remains very bullish, and continues to show a even larger inverted head and shoulders pattern on the daily time frame, with the price the neckline of the pattern, around the $2.95 level.
According to the overall size of the bullish reversal pattern, copper prices could still hit the $5.00 level. Seeing as the pattern is in the process of playing out to the upside, shorts need to be very carefull.
See real-time quotes provided by our partner.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |