Upon analyzing the movements of the natural gas futures since the beginning of this month, I anticipate that the bulls are trying again to move upward amid growing expectations of the last bout of this winter.
According to AccuWeather reports, a snowstorm could hover over the South Plains from Tuesday to Wednesday and reach the mid-Mississippi Valley.
Undoubtedly, this could be the end of the winter storm, which could follow an advent of selling sprees in the last week of Feb. 2025.
Technical Levels to Watch
In the weekly chart, natural gas futures are trying to hold the immediate support at 9 DMA at $3.678, but a breakout below this could push the futures to test the next support at 20 DMA at $3.257.
Inversely, the natural gas futures, currently trying to sustain above the significant resistance at 200 DMA at $3.90 but a bullish formation after the formation of a bullish crossover with an upward move by the 50 DMA above the 100 DMA, indicates a futile attempt could be there to sustain above the 200 DMA.
Undoubtedly, any attempt to cross the next resistance at $4.376 could result in a selling spree shortly.
In the daily chart, natural gas futures, indicating an advent of exhaustion shortly, if not find a sustainable move above the immediate resistance at $4.239 after a bearish formation of three advance blocks since Feb. 14, 2025.
This bearish formation could get confirmation if the natural gas futures find a selling spree below the significant resistance at $4.239.
Take Away for the Traders
Traders should remain cautious this Tuesday and Wednesday before creating a position in natural gas futures.
I anticipate that the next two trading sessions could see wobbly moves this week before making a directional move.
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Disclaimer: Readers may take any position in natural gas futures at their own risk as this article is based only on the observations.