Natural Gas Technical Analysis: Price Amid Negative Expectat| MENAFN.COM

Saturday, 01 April 2023 01:32 GMT

Natural Gas Technical Analysis: Price Amid Negative Expectat

(MENAFN- Daily Forex) Spot natural gas prices (CFDS ON NATURAL GAS) fell during their early trading on Tuesday. It recorded daily losses until the moment of writing this report by -1.35%, to settle at $2.554 per million British thermal units, after rising slightly during yesterday's trading by 3.64%.

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After a week in which natural gas futures tumbled nearly 30 cents, the Nymex March contract appears to be trying to find a bottom. The spot traded mostly range-bound throughout Monday's session, before finally settling up around 4.7 cents. at $2.457 per million British thermal units.

Meanwhile, spot gas prices continued to decline, with temperatures cooling significantly in the aftermath of last week's Arctic eruption.

Despite the cold outlook, the latest weather models depict a somewhat moderate pattern for the next two weeks, which could quickly reverse Monday's modest gains along the futures curve.

All winter so far that's all the bulls got from the weather a few days of chilly weather here and there, soon followed by a stretch of mild temperatures that quickly drained demand and kept stocks plentiful.

Even production cuts linked to freeze-outs associated with the most intense Arctic eruptions, including last week's winter storm Mara, have quickly eased as temperatures rise. On Monday, for example, production in the lower 48 states returned to about 99 billion cubic feet per day, after slipping to about 96 billion cubic feet per day during a week of cold weather. Natural Gas Technical Analysis

Technically, the main bearish trend dominates the movement of natural gas in the short term and 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.

The price has settled in its recent trading to try to compensate for part of what It incurred in previous losses, and at the same time, it is trying to drain some of its clear oversold levels with the relative strength indicators, especially with the start of positive signals from them.

Therefore, our expectations indicate a decline in natural gas during its upcoming trading, especially if it breaks the 2.432 support level , to then target the first support level at 2.00.

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