Our expectations suggest that natural gas will rise during its upcoming trading.
Natural gas prices rose during recent trading at the intraday levels to achieve daily gains until the moment of writing this report, by 2.56%. It settled at the price of $4.304 per million British thermal units, after its rise in trading yesterday and for the third day in a row by It reached 2.79%.
The Biden administration is considering ways to secure energy for European allies if Moscow cuts oil and natural gas exports, CNBC reported Tuesday.
Meanwhile, natural gas futures rose midweek after one of the major weather models made the biggest reversal this winter, leading to a massive jump in demand expected for the next two weeks.
With weeks of persistent cold already in place, natural gas traders were closely watching the February outlook. However, weather models did not provide much certainty, with erratic fluctuations in coldness expected between different data sets.
Technically, the rise of natural gas comes with the start of positive signals on the relative strength indicators. This is after they reached areas of oversold sales, to succeed in getting rid of the negative pressure of the simple moving average for the previous 50-day period. It settled above its current resistance level 4.214, to attack in turn a bearish corrective trend line in the long run.
Therefore, our expectations suggest that natural gas will rise during its upcoming trading, but on condition that it confirms its breach first of the aforementioned resistance level 4.214 by closing at least one above it, to then target the first resistance levels at 4.740.