Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

The Price is Preparing to Br

[ad_1]

Natural gas futures opened the week in the red, seeing their first drop in three sessions, as weather patterns warmed with forecasts for the next week or so.

  • Spot natural gas prices (CFDS ON NATURAL GAS) settled down during its early trading on Tuesday, achieving slight daily gains until the moment of writing this report, by 1.45%.
  • It settled at $ 2.519 per million British thermal units, after declining during yesterday’s trading by 1. -6.58%.
Advertisement

Natural gas futures opened the week in the red, seeing their first drop in three sessions, as weather patterns warmed with forecasts for the next week or so. With production nearing recent highs and storage surpluses set to grow in the coming weeks, futures contracts steadied. March gas futures on Nymex on Monday at $2.405 per million British thermal units, down 10.9 cents from Friday’s close, and April futures were down about 10.8 cents at $2.499.

This comes despite an increase in gas flows to Freeport on Monday to 0.5 billion cubic feet per day, the highest level since the facility was first closed due to a fire in June of 2022, in a sign that the plant has begun to liquefy gas.

With only a few days of sharp cooling over the next couple of weeks, the market will likely be looking for clues as to whether the demand situation is picking up. Recent government inventory reports reflected some tightening, but lower production and renewable energy production were also factors.

Regardless, inventories are expected to remain strong and should increase by some estimates to more than 250 billion cubic feet above the five-year average. Inventories on February 3 were about 2,366 billion cubic feet, which is 233 billion cubic feet above levels. A year ago, 117 billion cubic feet higher than the five-year average.

Natural Technical Analysis

Technically, the main bearish trend dominates the natural gas movement in the medium and short term and along a slope line, as shown in the attached chart for a (daily) period of time. Negative pressure is continuing for its trading below the simple moving average for the previous 50-day period, in addition to that, we notice the arrival of strength indicators Relative to highly overbought areas, exaggerated compared to the price action.

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 psychological support level at 2.00.

Natural Gas

Ready to trade FX Natural Gas? We’ve shortlisted the best commodity trading brokers in the industry for you.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.