Short

Natural gas fluctuated in downtrend channel

Updated

Natural gas has recently fluctuated in downtrend channel due to high inventory and tepid demand. According to the chart, it is on course to form a head and shoulder pattern in long-term. In my opinion, 2.88 support line(Target 1) will be tested in short-term, if NG breaks through support line, prices likely to head to target 2 or even lower. However, I remain bullish based on fundamental. The spell of hottest weather of a year is just around the corner, and it will help spark buying and push prices higher when cooling demand comes in play.

Trade active

Trade closed: stop reached

Due to storage projection was below consensus, NG prices spiked and pierced resistant line, which would lead to higher prices. It's in line with fundamental.

Trade closed: target reached

Target 1 reached. close

sunnylocus

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