Price is Getting Rid of its

Meanwhile, prices surged higher after a historic snowstorm hit New York over the weekend.

  • Spot natural gas prices (CFDS ON NATURAL GAS) slightly decreased in early trading on Tuesday, to record daily losses until the moment of writing this report.
  • It went down by -2.66% to settle at a price of $6.406 per million British thermal units.
  • This happened after rising during yesterday’s trading and for the sixth day respectively, by 6.08%.

US natural gas futures jumped nearly 8%, hitting a two-week high on Monday, on expectations of cooler weather, stronger heating demand this week than previously expected, and fears that a rail strike could disrupt a rail strike. Coal deliveries are forcing power generators to burn more gas.

Traders also noted the expected restart of the Freeport LNG export plant in Texas in mid-December. If that happens, will boost gas demand in the coming weeks, after the plant closed six months ago after the outbreak of the virus.

Meanwhile, 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. It could reduce heating demand in late November, though. She said but noted that the updated 3- to 4-week forecast covering early December to mid-December was cooler-than-normal conditions and back for nearly all of the northern US, which could boost heating demand again.

Meanwhile, prices surged higher after a historic snowstorm hit New York over the weekend.

Natural Gas Technical Analysis

Technically, the price succeeded in yesterday’s trading in breaching a bearish corrective slope line in the short term, as shown in the attached chart for a (daily) period. This coincided with surpassing the resistance of its simple moving average for the previous 50 days, thus getting rid of its negative pressures at once.

But in front of that, we notice the beginning of a negative crossover with the RSI, after reaching overbought areas. This caused the price to rebound in its early trading for today due to the need to dispose of some of this overbought area.

Therefore, our expectations indicate more ascent for natural gas during its upcoming trading, especially as long as its stability is above 6.412, to target the 7.788 resistance level.

Natural Gas

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