NATGAS eyes $4.00 mark on improved weather
Natural gas prices in the United States, Asia and Europe are slumping at the beginning of a new year. Downward move launched in the second half of December 2022 continues with the US benchmark (NATGAS) taking a steep almost-9% dive today. A warmer-than-expected beginning of winter period can be named as a reason with temperatures in Europe and US being above historical averages for the period. Such a development helped further ease concerns that a feared energy crisis, involving blackouts, will not arrive. NATGAS is down 20% over the course of a week and around 35% down over the past month.
Natural gas prices slumped further on Tuesday. Taking a look at NATGAS at D1 interval, we can see that price breaks below a key support near $4.30 per MMBTu, marked with 161.8% exterior retracement as well as range with the previous downward impulse. Clearing this hurdle without any major response from the demand side may hint at strength of bearish momentum and signal potential test of the $3.60 support zone, marked with lows from December 2021.
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NATGAS at D1 interval. Source: xStation5
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