Natural Gas Technical Analysis: The Price is Trying to Recoup Some of its Losses

Earlier in the day, gas prices fell in Europe as a combination of mild weather and lower industrial consumption led to an unusually seasonal build-up in inventories that threatened to overwhelm the storage system. Spot prices for natural gas (CFDS ON NATURAL GAS) rose slightly in early trade on Thursday, registering a new daily loss of -0.52% as of the time of writing this report. This was after a rise to $ .171 million Btu during yesterday’s trade. at 3.50% to break this rally, the losing streak lasted four consecutive sessions. Advertisement See why oil is one of the most popular commodities BUY OIL NOW US natural gas futures jumped nearly 5% on Wednesday after hitting 10-month lows in the previous session. – Expected demand for LNG exports in the next two weeks. According to Traders, the biggest uncertainty in the market remains when the Freeport LNG terminal restarts the Texas LNG export plant. With Freeport back in business, demand for US gas will increase. The facility can convert about 2.1 billion cubic feet of gas into LNG, which is about 2% of US daily production. Gas prices fell in Europe at the beginning of the year due to a combination of mild weather and lower industrial consumption, which led to an unusually seasonal increase in inventories that threatened to overwhelm the storage system. Inventories in the European Union and the United Kingdom (EU28) are at their second highest level in a decade for this time of year and are on track to end the Northern Hemisphere winter at exceptionally high levels. Natural Gas Technical Analysis Technically, natural gas tried to offset some of its previous losses with yesterday’s profit. At the same time, it tried to eliminate some of its clear selling by relative strength indicators, especially when they turned positive due to the dominance of the short-term bearish correction trend on the slope. The bearish pressure has continued as it is trading below the previous 50-day simple moving average. Accordingly, our expectations suggest that natural gas will reverse lower in future trade until it stabilizes below the .7 1 resistance level to target the key 3.618 support level.

James Rogers

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