NATGAS regained some ground yesterday after a dynamic wave of declines that saw nine straight sessions of declines. From a technical point of view, gas broke out below the key support zones marked by the 50-, 100- and 200-day exponential moving averages (on the chart these are the blue, purple and gold curves, respectively). The RSI indicator shows that US natural gas is now trading at its lowest levels since February of this year.
From a fundamental point of view, the temperature forecasts for the U.S. point to an all-time high. The 2-yr forecasts at this point settle in the region of 0.5 standard deviations of the ECMWF forecast range.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Projected gas demand for electricity generation is now coming out above the upper range of the 5-year average. Source: Bloomberg Financial LP
Downward pressure on gas, however, continues to be exacerbated by US gas inventories remaining high on a seasonal basis. Source: Bloomberg Financial LP
From a technical point of view, the key question now seems to be whether NATGAS will manage to return above the range of the 100-day EMA (purple curve), which could be an important resistance point on the chart in the short term. The most important support remains the daily minimum from yesterday's session. Source: xStation
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
