DanteBouzas

Is Naural Gas running out of momentum in the short term?

NYMEX:NGG2021   Henry Hub Natural Gas Futures (Feb 2021)
Last week's COT Report printed a non-commercial net positioning of 9995. 15414 positions were added to the long side and just 725 positions added to the short side. There has not been this many positions added to the long side in 4 weeks. I am curious to see as to where this leads us as technicals lean more to the sell-side and weather is indicating colder weather later this week. I have marked 2 supply zones that I am interested in. The first one is where we are now, from 2.566 - 2.626 and the second one is further down, from 2.263 - 2.444. Also, the 4 hour S1 is at approximately 2.584. Can price stay in the supply zone we are in now or will it breakdown and move further down to the second one? Volume has been lighter than the past 14-day average. I think today's volume might give us a clue.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.