Shortly before the opening of New York on Thursday, natural gas prices were skyrocketing. As I suspect, the technical chart design has played a big role in turning the market around as it is due to be released today from 14:30 GMT.
Earlier in the week, the move to the top was triggered by a combination of high market chases and short-term forecasts by the end of October. Check that out from the list.
I also noticed that this action had nothing to do with the basics. Check that out because traders are expected to go back before the big needle in storage and simple temperatures. And that big line may not be the cards until the first cold hits.
Finally, I mentioned that professional traders are pushing the market higher, they are buying the drops caused by speculation. This type of procession also attracts short-term buyers, especially at this time.
Before the market moved upwards, the market returned to a short-term technical support position and our analysis seemed to hit all cylinders. However, we need to do more because we have identified a potential counter-trend and a new and more important place for value seekers.
At 10:58 GMT, December’s natural gas futures rose $ 5.769, up $ 0.174 or + 3.11%. This is an increase of $ 5,469 from the lowest day.
Energy Information Management Weekly Storage Report
Ahead of this week’s Sept. 24 report on the U.S. Energy Information Administration’s (IAA) weekly storage report, initial estimates suggest a build-up in the mid-80s.
According to the Natural Gas Intelligence (NGI), the Bloomberg survey found 87 BCF intermediaries, ranging from 79 BC to 92 BCF. According to Reuters, the average forecast fell to 88 BCF, with a minimum of 66 BCF and a maximum of 92 BCF.
The Wall Street Journal’s weekly survey showed an average increase of 84 BCF. Estimates ranged from 66 BCF to 89 BCF. NGI is a model for the construction of 89 BCC.
Estimates are comparable to 74 BCC construction for the same week in 2020 and 72 BCF for the five-year average.
Daily chart design Thursday will play a major role in the future of natural gas market in December.
Short-term range ranges from $ 4,879 to $ 6,425. Its 50% to 61.8% is near $ 5,652 to $ 5,469. The lower level of this zone stopped selling earlier in the session.
The smallest range ranges from $ 6,425 to $ 5,469. If today’s reversal is fast enough, we could see it shift from $ 5,947 to $ 6,060. The trader’s response to this area determines the next activity.
Violent anti-trend sellers can range from $ 5,947 to $ 6,060 on the first try. They try to produce a second lower part that can lead to a downward trend.
Winning $ 6,060 shows that the purchase is getting stronger. This makes $ 5,469 the next support target with $ 6,425.
If $ 5,469 fails as support, look to extend the sale by $ 5.185 to $ 4,892. Find buyers for this area test. If $ 4,892 fails as support, we may see a downward trend.