Natural gas (06.11.2013) traded lower in last few session on delay in cold weather in US. However it is expected to hit by cold weather soon now.
Now natural gas is trading around $3.464 & as we can see on charts , natural gas was unable to provide a close below parallel support area around $3.398 & the bounce we witness yesterday may produce a double bottom pattern for coming days. At the same time the candlestick formation is quite bullish & hinting for a bounce ahead.
On fundamental side coming US winter season may boost the inventory outflow. The last 5 year average price is $3.77 while currently trading at $3.464. Last 5 year average inventory storage is 3741 while current storage is 3779.
Based on above studies, we will prefer to go long in natural gas for possible targets around $3.66 & then may be $3.7. Only a day close below $3.3 will delay the forecast.
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@rajandran if possible share the target updates in your circle i.e. fb, twitter etc
Sure from next time onwards will track the progress!