[ad_1]
Technically, the price finds some support from the stability of the 2.432 level, this support that we had referred to in our previous reports, which gave the price some positive momentum.
Spot natural gas prices (CFDS ON NATURAL GAS) settled down during its early trading on Wednesday, recording daily losses until the moment of writing this report, by -1.47%. It settled at a price of $2.623 per million British thermal units, after rising during yesterday’s trading by . 7.21%.
Natural gas futures strengthened on Tuesday, spurred in part by signs of a return to operation at the long-dormant Freeport LNG export terminal. The prospect of another cold snap hitting the lower 48 states in the US later this month also proves supportive. Nymex March gas futures settled up 16.2 cents per day at $2.567 per million British thermal units, and the April contract rose 15.3 cents to $2.652.
Although the near-term gas outlook is sharply negative, the long-awaited return of the LNG export terminal in Freeport on the Texas coast fueled price gains on Tuesday. another on Tuesday, according to Kpler ship-tracking data.
Freeport LNG has also asked federal regulators for permission to restart all three liquefaction trains.
Natural Gas Technical Analysis
Technically, the price finds some support from the stability of the 2.432 level, this support that we had referred to in our previous reports, which gave the price some positive momentum. This happened considering the dominance of the main bearish trend on the medium and short term along a slope line, as shown in the attached chart for a period. Negative pressure continued due to its trading below the simple moving average for the previous 50-day period.
In addition, we notice that the relative strength indicators have reached highly overbought areas, in an exaggerated manner compared to the price movement, which suggests the start of negative divergence in them.
Therefore, our negative expectations surrounding natural gas are still valid, especially in the event that breaking the aforementioned 2.432 support level will increase the negative pressure on it, to target the psychological support level at 2.00 directly.
Ready to trade FX Natural Gas? We’ve shortlisted the best commodity trading brokers in the industry for you.
[ad_2]