Spot natural gas prices (CFDS ON NATURAL GAS) stabilized at a decline during the recent trading at the intraday levels, to achieve slight daily gains until the moment of writing this report, by 0.78%. It settled at the price of $ 5.344 per million British thermal units, after declining in yesterday’s trading by an amount of -2.93%.
Natural gas futures stumbled in trading on Tuesday, as weather forecasts in the United States and abroad turned increasingly stable, while production rose as demand fell broadly amid the outbreak in China and the prospect of a ceasefire agreement in Ukraine.
US production reached about 95.5 billion cubic feet on Tuesday, up more than 1 billion cubic feet from the previous week. Bloomberg data showed that this puts output near its highest levels in 2022 at around 96 billion cubic feet.
Reports from Ukrainian and Russian officials who say some progress has been made in ceasefire talks have eased concerns about oil and gas shortages caused by the war. This is putting negative pressure on prices in most commodity markets. However, the Associated Press reported that Russia continued its aggressive attacks across Ukraine on Tuesday.
Technically, the price declined due to the stability of the resistance level 5.710, to reap the profits of its previous rises, and to try to drain some of its clear overbought by the relative strength indicators. This is especially with the start of negative signals from them, to gather its positive forces that may help it recover and rise again.
All of this is due to the continuation of positive support for its trading above its simple moving average for the previous 50 days, and amid the dominance of the main bullish trend in the medium term along a slope line, as shown in the attached chart for a (daily) period.
Therefore, we still expect the rise of natural gas to return during its upcoming trading, as long as the support level 4.954 remains intact, to target again the pivotal resistance level 5.710, in preparation for attacking it.
