In normal circumstances, warm weather extends bearish sentiments for natural gas futures but, this time situation could be different with the growing export of LNG after export disruption due to freezing weather which jammed natural gas supply pipelines. The weather could remain much colder in Texas for the next two weeks. Although, the current price consolidation of natural gas futures seems to be quite confusing. But, I find that this consolidation seems to a base formation for a breakout move.
I find that the natural gas futures could test $3 resistance once again amid growing volatility. There is no doubt that a steep move above $2.889 could result in a short-covering rally before this weekly closing, followed by a sustainable move of futures above $2.948. On the other hand, only a sustainable move below the level of $2.593 could extend selling pressure. I find that the immediate target for natural gas bulls could be $2.777 before heading towards $2.889.
Natural Gas Futures Daily Chart