Latest News

Natural Gas Technical Analysis: Price is Settling Higher

Latest News

Technically, the bearish corrective trend dominates the movement of natural gas in the short term.

Spot natural gas prices (CFDS ON NATURAL GAS) settled on a rise in early trading on Wednesday, to record slight daily losses until the moment of writing this report.It went down by 1.73%, settling at a price of $5.619 per million British thermal units, after rising sharply by 6.65%. during yesterday’s trading.

Advertisement

US natural gas futures jumped about 10% on Wednesday during a very volatile week of trading due to lower production at the start of the month and expectations that gas demand will rise once the Freeport Liquefied Natural Gas (LNG) export terminal in Texas is back in operation.

Wednesday’s price jump came despite expectations of lower demand over the next two weeks, with the weather expected to remain mild until at least mid-November. / October.

Freeport LNG expects its 2.1 billion cubic feet per day (bcfd) export plant to return to at least partial service in early to mid-November after an unexpected shutdown on June 8 due to a pipeline explosion.

Technically, the bearish corrective trend dominates the movement of natural gas in the short term. It is being affected by the breach of a major bullish slope line in the medium term earlier, as shown in the attached chart for a period (daily), with the continuation of negative pressure for its trading below the simple moving average for a period of 50 days.

In addition, we notice that the relative strength indicators have reached areas of overbought activity, exaggeratedly compared to the price movement, which suggests the beginning of a negative divergence.

Therefore, our negative expectations surrounding natural gas are underway. We expect the price to decline during its upcoming trading, especially in the event of confirming its breach of the pivotal 9.455 support level, to target the 4.214 support level.

Ready to trade Natural Gas in Forex? Here are some excellent commodity trading platforms to choose from.

We will connect you with the broker that is most compatible for you.

Start Now

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:Latest News

Leave a reply

Your email address will not be published. Required fields are marked *