Natural Gas Price Futures (NG) Technical Analysis – Market Gaps Higher With Buyers Eyeing $3.215

The early price action has created a cluster of support Gann angles at $3.059 to 3.048. Trader reaction to this area will determine the direction of the natural gas market the rest of the session. The rally could get stronger depending on how far into the US the cold pushes in from Canada, and how long it stays.
James Hyerczyk
Natural Gas
Natural Gas

Natural gas futures gapped higher on Monday as investors likely reacted to the weekend’s cold weather and the forecasts calling for the return of colder temperatures January 19-21 and January 24-25. Traders knew there was risk going into the weekend amid uncertainty over how much frigid polar air over Canada would push across the border in the U.S.

At 0121 GMT, March natural gas is trading $3.095, up $0.150 or +5.09%.

At this point in the trading session, we’re going to assume that the European weather model saw the same cold pattern as the GFS model, which would be a bullish development. However, we can’t be certain until we see the updated forecast from NatGasWeather later in the day.

Daily March Natural Gas

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Friday when buyers took out the swing top at $2.932. The main trend will change to down on a trade through $2.809.

The short-term range is $3.659 to $2.771. Its retracement zone at $3.215 to $3.320 is the primary upside target.

Today’s gap to the upside and the gap down from December 28 to December 31 has created an island of prices between $3.028 and $2.771.

Daily March Natural Gas (Short-Term)

Daily Technical Forecast

The early price action has created a cluster of support Gann angles at $3.059 to 3.048. Trader reaction to this area will determine the direction of the natural gas market the rest of the session.

Bullish Scenario

A sustained move over $3.059 will indicate that buyers are coming in to defend the uptrend. If this can create enough upside momentum then the market may take a run at the short-term 50% level at $3.315. We could see sellers on the first test of this level. Overcoming it could trigger a further rally into the short-term Fibonacci level at $3.320. This is followed closely by a downtrending Gann angle at $3.359.

Bearish Scenario

A failure to hold $3.048 as support will signal the return of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the next uptrending Gann angle at $2.911.

Keep in mind that this is a short-term move because the weather forecast from January 19 to January 25 consists of cold temperatures, followed by warm temperatures then cold temperatures.

The rally could get stronger depending on how far into the US the cold pushes in from Canada, and how long it stays.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US