Technically, natural gas is declining amid the dominance of the bearish trend in the short term, along a slope line, as shown in the attached chart for a (daily) time period.
- Spot natural gas prices (CFDS ON NATURAL GAS) fell during their early trading on Thursday, to record new daily losses until the moment of writing this report, by -1.60%.
- It settled at a price of $2.460 per million British thermal units, after declining during yesterday’s trading by – 7.14%.
Nymex March gas futures settled on Wednesday at $2.396 per million British thermal units, down about 18.0 cents from the previous day, and April futures were down about 18.7 cents to $2.477.
Natural gas futures tumbled in the middle of the week, erasing the gains of the previous two days, as traders looked to build storage surpluses later this month.
Forecasts ahead of the EIA’s weekly inventory report put a draw of 187 bcf to 212 bcf, while a Reuters poll of 13 analysts showed an average decline of 194 bcf, while a Bloomberg poll of six analysts yielded an average withdrawal of 201 billion cubic feet on average. The Wall Street Journal poll of 14 analysts had an average withdrawal of 199 billion cubic feet.
Natural Gas Technical Analysis
Technically, natural gas is declining amid the dominance of the bearish trend in the short term, along a slope line, as shown in the attached chart for a (daily) time period. Negative pressure continued for its trading below the simple moving average for the previous 50-day period, so that the price is now preparing to break the current support level at 2,432.
Therefore, our expectations indicate a further decline for natural gas during its upcoming trading, especially if it breaks the 2.432 support, to then target directly the first support level at 2.000.
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