Here’s the Recent Price action Analysis of Natural Gas on 4h chart. In earlier content I updated about long-term outlook of Natural gas based on weekly chart. This time, the focus is on short-term outlook. Since April, Prices are trending higher. MCX Natural gas prices rose from 166 to 196 within a period of 2 months. Traders must focus on this Short term trend for potential trading opportunities.
Natural Gas Price Action Analysis on 4h Chart
From the Perspective of Wyckoff, it’s a classic example of Mark-up phase. Uptrend rallied from 166 to 196 and now prices are trading close to 190. The trend was very volatile; we could see multiple corrections, retracements within the Trend. Bears and short sellers constantly interrupted the Buying pressure. But those interruptions offered excellent trend trading setups for Swing traders.
In Fundamental point of view, Demand for Natural gas tends to raise in summer months as warmer temperatures increases the need for gas fired electricity in western countries. Seasonality is another reason which can temporarily increase the consumption of Natural gas. Lower than average storage inventory reports also helped the prices to support an optimistic tone.
Right now we see another bullish trend leg formation in Natural gas. Just like earlier price movements, we may experience some minor correction or retracements followed by the completion of trend leg. The round number key level at 200 (Based on mcx prices) might act like a resistance zone. Traders should watch the developing Price action and trade accordingly. Also consider higher time frame Market structure when taking decisions.
