- Spot natural gas prices (CFDS ON NATURAL GAS) settled on a rise in early trading on Tuesday, to record slight daily losses until the moment of writing this report.
- It went up by -0.45% to settle at a price of $5.618 per million British thermal units, after rising sharply during trading.
- Yesterday and for the second day in a row, a rate of 9.59%.
Natural gas futures rose 8%, extending their rally for the second session in a row, to reach their highest level in a week. This happened after forecasts of warmer-than-normal US weather sent heating fuel prices down 23% last week, before options expire and expectations that Demand will soon rise as LNG export terminals start operating after being interrupted due to maintenance work.
Gas futures have been very volatile, with prices up about 14% so far this week after a 23% drop last week. The drop brought them to their lowest level in seven months, as utilities boosted the amount of gas stored before winter.
Despite weeks of losses, US gas futures have remained up about 51% this year, as higher global gas prices fueled demand for US exports due to supply disruptions and sanctions linked to Russia's invasion of Ukraine on February 24.
Natural Gas Technical Analysis
Technically, natural gas is trying to compensate for some of its previous losses, supported by the influx of positive signals on the relative strength indicators. This occurred reaching earlier in oversold areas, considering the dominance of a bearish corrective wave in the short term. It was affected by breaking a major bullish slope line on the medium term was earlier, as shown in the attached chart for a period (daily), with the negative pressure continuing due to its trading below the simple moving average for the previous 50 days.
Therefore, our expectations suggest the return of the decline in natural gas during its upcoming trading, especially in the event of its stability returning below the level of 5.455, to target the support level of 4.214.
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