Now natural gas is trading around $4.319 & as we can see on charts the continue trading above $4.140 is indicating that the rally isn't complete & we may witness further bullishness on coming trading session. However we also witness a possibility of negative divergence on but it still has space for upside. Consolidation before the contract expiry providing more opportunity for buyers.
On fundamental side the 5 year average inventory for 1st week of the year is 3207 bcf while current inventory before 1st withdrawal is 2974. The 5 year average price is $4.32 also current price is $4.32. Winter weather may continue in US major gas consuming area till end of jan 2014.
Based on above studies, we will prefer to stay on bull side & looking for quick upside targets around $4.785 & then may be $5. However thin may generate before moving up. The 5 year average price $4.142 will act as our SL on day closing basis.
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