Natural Gas Technical Analysis: Price Continues to Rise

Spot natural gas prices continued to rise in recent trading at intraday levels, to achieve new daily gains until the moment of writing this report, by 1.56%. It settled at the price of 8.420 dollars per million British thermal units, after its rise during trading on Friday. By 5.52%, the price rose for the third consecutive week, by 16.77%.

Nymex futures closed the week on the upside, rising 36.7 cents on Friday to settle at $8,299, up $1,283 from the previous week’s settlement of $7,016.

The US government’s smaller-than-expected weekly inventory report amplified storage adequacy concerns as it provided evidence that demand for refrigeration is depleting a significant portion of stocks after the extended outage at the Freeport LNG terminal.

The Energy Information Administration (EIA) on Thursday reported 32 billion cubic feet of natural gas was pumped into the United States during the week ending July 15, a reading that was on the upside from surveys pointing to an injection of up to 40 billion cubic feet.

Meanwhile, Matthew Baldwin, deputy director-general of the European Commission’s Energy Department, said on Saturday that the European Union is seeking additional gas supplies from Nigeria, as the bloc prepares for a possible cut in Russian supplies.

Baldwin was speaking in Nigeria where he held meetings with officials from Africa’s largest oil producer this week. He was told that Nigeria was improving security in the Niger Delta and was planning to reopen a pipeline through Niger after August, which would result in more gas exports to Europe.


Trade with a top-rated
Nigerian broker now!

Trade Now!

Natural Gas Technical Forecast

Technically, the price continues to rise along a minor bullish slope line in the short term, as shown in the attached chart for a (daily) period. It is supported by its continuous trading above its simple moving average for the previous 50 days. This is in addition to the influx of positive signals on the relative strength indicators, despite reaching severe areas of oversaturation with purchases.

Therefore, our positive expectations surrounding natural gas are still valid, as we expect the price to rise during its upcoming trading, especially as long as it stabilizes above 8.054, to target the pivotal resistance level 9.600.

Natural Gas

Ready to trade FX Natural Gas? Here are the best commodity trading brokers to choose from.

Leave a Reply

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

Risk warning: Trading in Contracts for Difference (‘CFDs’) carries a high level of risk and can result in the loss of all your investment. As such, CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. For more information about the risks associated with trading CFDs please find and read our ‘Product Disclosure’.

Please recognize that this website is the only official website, please do not enter other clone websites through Internet search or advertisements.

© 2011 - 2023 All Rights Reserved.