Natural Gas Analysis for this week

 Natural Gas is likely to show a correction this week or next week

On analysis of the Natural Gas chart on different time frames, we found that it may show a correction from the current price level which is currently near 3$. 

RSI and Bollinger band suggesting a correction, although today is inventory day of Natural Gas so the price may be volatile. It is not advisable to go long in Natural Gas for this and next week, rather it will be better to cut long positions if any, and short on any bounce. 

In the below chart we have used two major indicators- Bollinger Band and RSI.

As you can see in the daily chart, a shooting star pattern is in formation. Yesterday an inverted hammer candle was made on the daily chart. With the stop-loss above 3$, a short position can be made for correction up to 5%-8% within 2 weeks. 

Disclaimer: The author of this post does not have any position in Natural Gas futures. Readers are advised to take any position at their own risk; as Natural Gas is a highly volatile and most liquid commodity. Any loss/profit made on the basis of the above analysis will be unclaimed.