(MENAFN- Daily Forex) Spot natural gas prices (CFDS ON NATURAL GAS) continued to rise in early trading on Wednesday, to achieve new daily gains until the moment of writing this report, by 2.29%. It settled at a price of $7.111 per million British thermal units, after its progress during yesterday's trading and for the seventh consecutive day on respectively.
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US natural gas futures settled at a two-week high, on fears of a possible rail strike, offsetting expectations that heating demand will fall as the weather turns milder than usual.
Traders also noted that the market will be able to restart the Texas LNG export plant in mid-December as planned. For the plant, increasing demand for gas at the same time as cold winter weather will boost heating demand.
At the same time, natural gas trading comes with continuous gains in recent days after a historic snowstorm hit New York state over the weekend.
Analysts said NOAA's 6- to 10-day forecast shows above-normal temperatures for most of the central US, with cooler temperatures expected only in part of the Northeast, potentially reducing heating demand in late November. However, the Weather Service's updated 3- to 4-week forecast covering early to mid-December suggests that cooler-than-normal conditions will return in nearly the northern US, which could boost heating demand again.Natural Gas Technical Analysis
Technically, the price continues to rise amid being affected by the breach of a short-term corrective slope earlier. This is shown in the attached chart for a period (daily), with the positive pressure continuing to trade above its simple moving average for the previous 50 days. In front of that, we notice the beginning of the emergence of a Negative crossover on the relative strength indicators, after reaching overbought areas, which may curb the upcoming commodity's gains.
Therefore, our expectations indicate the continuation of the rise of natural gas during its upcoming trading, as long as support remains at 6.412, to target the 7.788 resistance level .
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