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Natural Gas

Natural Gas Faces Key Resistance at 3.000 – Bearish SetupNatural Gas futures are currently at a critical juncture, with various technical indicators pointing to a potential bearish trend. Traders and analysts are closely watching the price action as it hovers near a significant resistance level, and the upcoming week could provide further clarity on the direction of the market. While technical signals suggest a downside, broader market dynamics such as supply-demand factors and geopolitical tensions could influence price movements. Based on a comprehensive technical analysis of Natural Gas futures, the commodity is facing a significant resistance level around 3.000, aligning with a strong downward trendline. This suggests a potential bearish movement in the upcoming week, with a key target of 2.527 in sight. A critical observation on the RSI (Relative Strength Index) front indicates further bearish pressure. The multiple RSI analysis, particularly focusing on the 7-period RSI, reveals that it is extending a large distance from other RSI levels, reinforcing a downward bias. This divergence in the RSI suggests that momentum is clearly favoring the bears, pointing to a potential price decline. Additionally, the weekly chart provides further evidence of a bearish setup. A well-established trendline highlights continued resistance to upward movement. Furthermore, the formation of a double-top pattern on the weekly chart adds to the bearish sentiment, as this is typically a reversal pattern that indicates a shift from bullish to bearish conditions. In conclusion, technical indicators, including the downward trendline, RSI divergence, and the double-top pattern, all suggest that Natural Gas may see further downside, with a target of 2.527 looking increasingly likely. However, supply and demand dynamics and geopolitical events, such as Middle East tensions, could influence the market and potentially alter this technical outlook. Traders should closely monitor these factors, as any disruption in supply chains or changes in demand may trigger a shift in price direction.
NYMEX:NG1!Short
by Sudhir-Sirohi
Really as Simple as it seems- Very simple case for NG bulls on a long (2-5 year) basis. Macro trend simplified with nothing more than trendlines - Shorter term bear play will be described in another post - NG appears to be making a Jesse Livermore accumulation megaphone pattern as it did in the 90s/2000s 1) red long term downtrend line broken to the upside and retested beautifully. 2) weekly chart shows higher highs and higher lows beginning to develop on a longer time frame after the nasty drop from 2021 highs to lows which bottomed in the 2$ vicinity. 3) Shorter term black trendline still providing resistance upon the 3rd test. Confirmation of a breakout here is yet to be seen (this was where the short play revolves around) 4) major resistance around the upper red horizontal line at roughly 3.19. Lesser resistance just below red horizontal line. Conclusion: NG has been and continues to be extremely cheap historically. As NG resolves these resistance zones it appears a 1-2-3-4-5-6-7-8 megaphone pattern will generate as NG eventually reaches the 12-14$ area within the next few years. Natural Gas expected to tag lower trendline and upper trendline of megaphone pattern accordingly with seasonality and resistance levels along the way. Volatility is expected as the cylinder widens and price action becomes more erratic, though long term, the trend is bullish, but the Widowmaker is not for the faint of heart. Scaling in, and buying near lower trendline tags is likely most likely to increase probability of maximum profit.
CAPITALCOM:NATURALGASLong
by Commodity_TA_Plus
Natgas - Pending RSI Failure SwingThis is an idea of what to look out for if natgas continues to rally into overbought RSI territory and tops out as it did in May and June of 2024 (current year). Look out for overbought RSI divergence followed by a failure swing as shown and outlined in further detail in the idea linked below, probably confirmed by MACD divergence as well. Look out for an approximately 40-day duration of top formation once RSI enters overbought territory, plus or minus 20 days. Be prepared for a max draw down of 2.14% if you short the close of the day the failure swing is confirmed. The previous gain was 29.16%. Due to the high draw down %, it may make sense to short a QG micro which is 1/4 of an NG contract, possibly adding more on the way down at your discretion. The trade entry may happen later this year, approximately mid November. Also something to watch out for is a much sharper rise with a much shorter RSI failure swing pattern as was formed at the start of the year 2024 (current year), also shown on the chart. The drawdown was much smaller and the target much greater (50% gain) but the short duration made the failure swing more suspect. It’s better if more than just 5 days form the top and a deeper valley is formed. This is all very hypothetical, but these are the types of swing trades I watch for and it’s good for me, if no one else, to note these potential trades as they approach. Please feel free to ask questions. Previous failure swing idea with additional explanation:
PEPPERSTONE:NATGASShort
by Skipper86
30% to 60% Upside Coming for Natty (Divergence Strategy)A powerful monthly bullish divergence just confirmed on natty. We see that the CCI had a monthly close which confirmed the bullish divergence setup. In this video I review how to determine targets with this strategy, and how to determine your risk. I anticipate a minimum 30% rally from current prices for natty, possibly heading up 60% from here. This doesn't mean this market won't have a pullback in the meantime. In my opinion, pullbacks are for buying until these price targets are reached. If you have any questions about this strategy, feel free to shoot me a message. Have a great week.
NYMEX:NG1!Long
by Tradius_Trades
18
Natural Gas Price Hits 3-Month HighNatural Gas Price Hits 3-Month High According to today's XNG/USD chart, the price of natural gas: → has risen by approximately 30% since the beginning of September; → is currently around the 2.95 level – the last time the price was at this level was at the end of June this year. Bullish sentiment is supported by: → forecasts of a warmer autumn, which is increasing demand for natural gas to power air conditioning systems; → concerns related to Hurricane Helen in the US Gulf of Mexico. According to the EIA, 5% of total US dry natural gas production comes from the Gulf of Mexico, and 51% of the total capacity of US natural gas processing plants is located along the US Gulf Coast. Technical analysis of the XNG/USD chart shows that in September, the price has been moving within an ascending channel (marked in blue). It is noticeable that from the 20th onwards, demand forces have intensified, leading to the following: → the price broke through the 2.64 resistance level; → the price moved to the upper half of the ascending channel, after which its median line began to show signs of support; → the RSI indicator reached overbought territory. Currently, there are no signs on the XNG/USD chart of bears attempting to seize control, while the bulls may be "gathering strength" for a possible attempt to break through the psychological level of 3.00. If this happens and is successful, it could pave the way towards the yearly high in the 3.20 region. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:XNGUSD
by FXOpen
1
Natural Gas Goes Kaboom!Profits have been secured I the Natural gas trade. That being said I still think Nat gas equities can push higher. On the UNG chart we just saw the 20 day MA & 50 Day MA bullishly crossover each other. Last time this happened Nat gas had a 4-5 day parabolic move. The bulls must be careful to not push this commodity up too quickly because it makes the pattern less likely to have a continued breakout. We are still putting in Lower weekly highs, so the next test of the most recent pivot high is going to be crucial. If the bulls can trigger the weekly inverse head and shoulder pattern there's going to be a great long continuation opportunity. Until we break the pivot high & create a higher high traders must use caution now that we've had a large move occur. AR, EQT, CPK, LNG are all set to push higher if Nat gas holds these gains.
CAPITALCOM:NATURALGAS
by Trading-Capital
1
HighPeak Energy | HPK | Long at $15.75HighPeak Energy NASDAQ:HPK currently has a 19.5million float, 24%+ short interest, 12x P/E, and debt/equity ratio of 0.7x... all while insiders are loading up on shares (CEO grabbed $5+ million in August 2024). Something may be brewing. The oil and natural gas company's earnings are expected to rise into 2025 after taking a hit in 2024. From a technical analysis perspective, the price for NASDAQ:HPK has been consolidating for some time now between $12 and $17. It won't trade sideways forever, but that doesn't mean it's only going up. Personally, with the amount of insider purchases and limited selling since 2022 while the stock is consolidation mode, I anticipate an upward move in the coming months or years into 2026. At $15.75, the stock is in a personal buy zone. There is a gap near $14.50 that may be closed in the near-term, but unless some abysmal company news emerges (which is counter-intuitive to insiders buying right now), the stock may be gearing up for a big move. Target #1 = $17.40 Target #2 = $19.00 Target #3 = $20.00 Target #4 = $22.30
NASDAQ:HPKLong
by WorthlessViews
Preparing for Winter: Accumulating Natural Gas and DBC ETFs in ATitle: Preparing for Winter: Accumulating Natural Gas and DBC ETFs in Anticipation of Rising Prices Comment: As colder months approach, I'm positioning myself strategically by accumulating Natural Gas, expecting a significant price surge driven by tight supply and potential demand spikes. Additionally, I'm reinforcing my portfolio with the DBC ETF, which covers commodities within the same sector. With rising energy needs on the horizon, this could be the perfect storm for a strong rally in energy markets.
AMEX:UNGLong
by Maximus20000
Natural Gas: Weak Day / Strong WeekNatural gas had a bit of profit taking today and you can't blame the bulls for trimming especially since we did the same. The Daily chart now needs a couple days of consolidation before another sustainable push. The weekly chart recaptured the 50 Weekly MA...very good near term sign. This can now be used as a support level to trade against for very tight stoploss swing traders. As long as we remain above the breakout neckline we should be likely heading to retest 2.75 & $2.90 Levels below can cause nat gas to fail and fall substantially. Alway remembers the Weekly trend still has Lower highs in place.
CAPITALCOM:NATURALGAS
by Trading-Capital
Oil Is Heading Down In Price, Support at $72 Just Broke, Low $60The price of Oil was in a trading range between $72 and $85ish, this past week it broke down support and now is going to head lower, I suspect we can see $62ish at first level of support, but I think mid $50's is now on the table. Why? Elections are upon us and they want to make costs come down, so it looks like they are curbing inflation and thus justify more rate drops. Also if Trump wins, he is talking about lower energy costs and ramping up production in the US, so the outlook is bearish for the energy commodities prices... as supply increases and demand remains the same, price goes down... and so the bear market starts.
BLACKBULL:WTIShort
by FinancialLiberties
Natural Gas waking up? Nat gas showed some poise today. Holding green in a red market where most commodities saw negative price action. This is impressive to see because Nat gas has a long historical trend of diverging from many commodities. The price action today also saw a red to green reversal further emphasizing the positive potential trend shift. Nat gas stocks were discounted today despite the stronger price action in the commodity. We remain bullish and long UNG, our call positions in the money.
CAPITALCOM:NATURALGAS
by Trading-Capital