Natural gas respected our analysis & moved to targets as per last report. However natural gas move to higher level after that but many important hurdles kept as away for time being.
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 RSI 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 volume may generate volatility before moving up. The 5 year average price $4.142 will act as our SL on day closing basis.
Trade with us CALL 088890 34986
www.mantracommodity.blogspot.in
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 RSI 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 volume may generate volatility before moving up. The 5 year average price $4.142 will act as our SL on day closing basis.
Trade with us CALL 088890 34986
www.mantracommodity.blogspot.in