Spot natural gas prices (CFDS ON NATURAL GAS) settled on a decline in its recent trading at the intraday levels, to achieve slight daily gains until the moment of writing this report, by 1.22%. It settled at the price of $ 8.298 per million British thermal units, after it slipped down during yesterday’s trading by It reached -5.18%. During the last month, the price increased by 15.14%.
Natural gas futures headed lower again on Tuesday, after a weekend in which production estimates rose and maintenance work curbed US export flows. Nymex gas futures for July settled at $8.145 per million British thermal units, down 58.2 cents on the day, after a 16.8% drop in Friday's trading. The August contract fell 57.4 cents to $8.138.
Spot NGI's Spot Gas National Avg headed in the opposite direction and rose about 25.5 cents to $8.105 in favorable weather early in the week.
US domestic production topped 96 billion cubic feet on Tuesday, hovering around this year's highest after a lackluster spring. Production increased by more than 1.0 billion cubic feet compared to late last week. Meanwhile, US LNG volumes fell to about 12 billion cubic feet on Tuesday amid repair work at a major export facility.
Technically, the price retreated in its recent trading, following the stability of the pivotal resistance level 8.870, to try to search for a bullish bottom. It can take it as a base that might help it gain the necessary positive momentum to regain its recovery and rise again, amid the influx of negative signals on the relative strength indicators, after they reached oversold areas .
This is in light of the dominance of the main bullish trend in the medium term along a slope line, with the continuation of positive pressure for its trading above its simple moving average for the previous 50 days, as shown in the attached chart for a (daily) period.
Therefore, our expectations still suggest a return to the rise of natural gas during its upcoming trading, provided that the current support level 8.054 remains intact, to target again the pivotal resistance 8.870.
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