Now natural gas march future is trading around $4.810 & as we can see on charts the over bought indicators added more space after yesterday profit booking session. However the correction was limited by 38.2% feb area of last rally & also nearing to the parallel support around $4.560. At the same time still staying in positive territory & the pattern is neutral. This structure indicate for another sharp rally in coming trading session.
On fundamental side, US not coming out of heavy winter season & expecting another snow storm this week. This producing record demand of ng & bringing the inventory level to 2423 bcf which is lowest in last 5 years.
Based on above studies, we will prefer to buy natural gas for possible targets around $4.950 & then $5.250. Only a day close below $4.430 will force us to reanalyze the charts.
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See more at: http://mantracommodity.blogspot.in/2012/07/crude.html#sthash.GSDteUtb.dpuf