Spot natural gas prices (CFDS ON NATURAL GAS) rose during the recent trading at the intraday levels, to achieve daily gains until the moment of writing this report, by 3.32%. It settled at the price of $4.667 per million British thermal units, after declining during Friday’s trading by - 1.07%. During the past week, natural gas rose by 10.60%.
Futures prices ended the week higher thanks to a cooler outlook in early March, although they lost some ground late in the week.
The March Nymex futures contract closed the week at $4,431, up 23.6 cents from Monday's settlement.
With the latest winter storm bringing frigid temperatures and snow, gas markets have rebounded by more than $1.00 a week in some parts of the northeastern United States. Prices in the western US also drove prices higher, as more chaotic weather systems are set to hit the region starting this weekend.
Snow is expected to expand over most of Wyoming, part of Utah, the Colorado Rockies, parts of northern Nevada and northern Sierra Nevada by Tuesday. Snow can also surround regions farther to the east in Dakota, Minnesota, and Wisconsin.
The second storm is due to arrive late Tuesday into Wednesday and is likely to have the most impact on the southwest.
With more cooling in the forecast for the next two weeks, with stocks well below historical levels, and any long winter weather that could lead to lower stocks before the injection season, most analysts are collectively taking the price for positive behavior in the coming period.
Technically, the positive pressures surrounding the price continue to dominate its movement, as the main trend is the bullish trend and along a slope line, as shown in the attached chart for a (daily) period, supported by its continuous trading above its simple moving average for the previous 50 days. In addition to that, we notice the influx of positive signals with relative strength indicators, after forming a positive divergence in the recent period, after reaching oversold areas, exaggeratedly compared to the price movement.
Therefore, our expectations indicate a rise in natural gas during its upcoming trading, as long as the support level 4.214 remains intact, to target the first resistance levels at 4.954.
