Natural Gas Technical Analysis: Price Is Preparing To Break
Date
12/6/2022 2:25:05 PM
(MENAFN- Daily Forex) Spot natural gas prices (CFDS ON NATURAL GAS) continued to decline in early trading on Tuesday, to record new daily losses until the moment of writing this report, by -1.89%. It settled at $5.244 per million British thermal units, after falling during yesterday's trading and for the fifth session, respectively, by -9.14%. Advertisement Oil prices are making great trade opportunitiestrade oil now!
US Natural gas futures continued the sell-off, falling more than 10% on Monday after forecasts of mild weather overshadowed the demand outlook. It was hurt by the delayed restart of the Freeport LNG export plant.
For January delivery, it fell 70.4 cents, or 11.2%, to settle at $5.577 per million British thermal units, after touching its lowest level since the end of October at $5.556.
On Friday the restart of the US's second-largest LNG export facility was once again delayed, relaying its expectation to resume natural gas processing until the end of the year, pending regulatory approval, further curtailing gas demand from the export sector.
Separately, Russia's Gazprom said it plans to ship 42.4 million cubic meters of natural gas to Europe via Ukraine on Tuesday.
While the Russian news agency Interfax said on Tuesday, quoting Deputy Prime Minister Alexander Novak, that Russia's production of oil and gas condensate rose 2.2 percent in the first eleven months of the year to 488 million tons.Natural Gas Technical Analysis
Technically, natural gas continues its decline in light of the dominance of the bearish corrective trend in the short term along a slope line, as shown in the attached chart for a period of time (daily). With the continuation of the negative pressure for its trading below the simple moving average for the previous 50-day period, in addition to that, we notice the presence of signals of the negativity of the relative strength indicators. This happened despite reaching highly oversold areas, for the price to surpass the pivotal support level of 5.310 in its last trades.
Therefore, our expectations indicate a further decline for natural gas during its upcoming trading, especially if it confirms its breach of the 5.310 support level , to then target the 4.430 support level.
Ready to trade fx natural gas ? We've shortlisted the best commodity trading brokers in the industry for you.
MENAFN06122022000131011023ID1105275280
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.