Natural Gas Technical Analysis: Price Is Trying To Recover


(MENAFN- Daily Forex)
  • Spot natural gas prices (CFDS ON NATURAL GAS) settled on an increase in early trading on Tuesday, achieving slight daily gains until the moment of writing this report, by 0.12%.
  • It settled at a price of $ 6.858 per million British thermal units, after advancing during yesterday's trading by 0.12%.
  • This happened after prices were able to turn their early losses into gains at the end of trading.

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US natural gas futures fell yesterday on the expiration day of the December contract on Monday, as demand expectations fell and production rose to an all-time high.

Refinitiv expects average US gas demand including exports to fall to 116 bcfd this week from 125.8 bcfd a week earlier.

Refinitiv data also showed that average gas production in the bottom 48 US states rose to 99.6 bcfd so far in November, up from 99.4 bcfd in October.

Meanwhile, British gas contracts for short delivery jumped on Monday morning amid rising demand amid cold weather and lower wind power generation, while Dutch contracts fell on fixed supplies.

Oil prices fell to their lowest levels this year earlier on Monday, before reversing an extended rally from their gains on Tuesday. Street protests against strict COVID-19 restrictions in China, the world's largest crude importer, raised concerns about the outlook for oil demand.Natural Gas Technical Analysis

Technically, the main bullish trend dominates the movement of natural gas in the medium term and along a slope line, as shown in the attached chart for a period of time (daily). As well as the continuation of the positive pressure for its trading above the simple moving average for the previous 50-day period, but in front of that, we notice the presence of negative signals with indices Relative strength, after earlier reaching highly overbought areas, which curbed recent price gains.

Therefore, our expectations indicate a rise in natural gas during its upcoming trading, provided that the pivotal 6.412 support level remains stable, targeting the 7.788 resistance level .

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