Natural Gas Technical Analysis: Price Starts The Week's Trad| MENAFN.COM

Saturday, 26 November 2022 07:16 GMT

Natural Gas Technical Analysis: Price Starts The Week's Trad


(MENAFN- Daily Forex)
  • Spot natural gas prices (CFDS ON NATURAL GAS) declined in early trading on Monday, to record slight daily losses until the moment of writing this report, by -1.04%.
  • The index settled at a price of $6.138 per million British thermal units, after rising during trading on Friday and for the fifth day.
  • Consecutively and in a session characterized by volatility by 0.36%, during the past week the price rose strongly by 10.79%.

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US natural gas futures joined the space for other energy commodities to fall on Friday after a volatile session. Natural gas bucked the late-week downtrend for the sector, boosted in part by US government data that showed a weekly increase in domestic inventories, which did not surprise the market.

Meanwhile, operator data showed eastward flows of gas through the Yamal-Europe pipeline to Poland from Germany.Gas flows from Russia to Europe via Ukraine were largely flat on Monday morning.

Russia's Gazprom said on Monday it would ship 42.9 million cubic meters of gas to Europe via Ukraine on Monday, a level similar to what was reported in recent days.

While the flow of gas through the Nord Stream 1 pipeline, which crosses the Baltic Sea to Germany from Russia, remained at zero, the pipeline has not reopened since it was shut down on August 31 for what was supposed to be three days of maintenance.Natural Gas Technical Analysis

Technically, natural gas continued its cautious rise during its previous trading, amid being affected by breaking a major bullish slope line in the medium term. This is shown in the attached chart for a (daily) period, with the negative pressure continuing for its trading below the simple moving average for the previous 50 days.

In addition to that, we notice that the RSI indicators reach overbought areas, exaggeratedly compared to the price movement.

Therefore, we still expect the decline of natural gas to return during its upcoming trading, as long as the pivotal
6.412
resistance level remains intact, to target again the 5.310
support level.

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