Where my energy-trading buddies at?
If you’re looking beyond crude oil to get your commodities fix, then you might want to check out what Natural Gas is up to.
Check out its 4-hour chart!
Natural Gas: 4-hour
Natural gas has been on an uptrend since the start of the year when the commodity broke above the $5.00 mark and stayed above its 100 and 200 SMAs.
Prices are consolidating closer to the $9.50 psychological handle that has also served as resistance in late May.
Are energy bulls just taking a breather? Or are we looking at a short-term bearish opportunity?
The U.S. Energy Information Administration (EIA) will publish its natural gas storage numbers and, if April and May’s trends continue, then we could see another rise in inventories.
Stochastic is also in the bears’ favor with a bearish crossover in the overbought territory.
Bearish momentum below the current levels could drag the commodity back down to $8.50 closer to the 100 SMA and June’s support zone.
Before you sell the commodity like there’s no tomorrow, though, you should know that some traders are expecting an increase in demand thanks to hotter-than-expected temperatures in Texas.
According to NatGasWeather for June 7-13, the southern 1/3 of the U.S. will be hot with highs of upper 80s to 100s as upper high pressure rules, hottest from California to West Texas.
If you see prices breaking above its short-term consolidation, then you gotta be ready for a move to $10 or at least new monthly highs for the commodity. Yipes!
