Spot natural gas prices (CFDS ON NATURAL GAS) rose in their recent trading at the intraday levels, to achieve strong daily gains until the moment of writing this report, by 3.60%. It settled at the price of $8.770 per million British thermal units, after rising by 1.43 during trading on Friday. %. During the last week, the price decreased by -1.84%.
The commodity's gains come despite a negative storage report released last Thursday by the US Energy Information Administration. Inventories left 15.1 percent below the five-year average.
Long-term forecasts from the Local Weather Service report temperatures that are cooler than seasonal temperatures in the Midwest and Northeast of the United States over the next 6 to 14 days, reducing demand for cooling.
Meanwhile, Texas power demand is set to break an all-time record this week, ahead of the hottest days of summer, testing the state's power grid resilience after problems earlier this year and blackouts for days of the year.
Technically, natural gas is preparing for its recent rise to attack the pivotal resistance level 8.870. It is in complete control of the main bullish trend in the medium and short term along a slope line, as shown in the attached chart for a (daily) period. The positive pressure is continuing to trade above its simple moving average for a period of the previous 50 days. We notice the beginning of a positive crossover on the RSI indicators, after reaching oversold areas.
Therefore, our expectations point to more ascent for natural gas during its upcoming trading, but provided that it first breaches the resistance level 8.870, to confirm to us its intention to continue rising, after which it will target the first resistance levels at 9.550.
