- Spot natural gas prices (CFDS ON NATURAL GAS) fell in early trading on Monday, recording sharp daily losses until the moment of writing this report, by -5.30%.
- It settled at $6.087 per million British thermal units, after declining during Friday’s trading by - 3.28%.
- During the past week, the price advanced by 6.42%.
US natural gas futures fell about 5% on Friday, in what was already a choppy week on expectations of lower cold weather and heating demand later in December than previously expected.
Friday's price drop came despite increased gas flows to LNG export plants in the US and lower production this week, as extreme cold from North Dakota to Texas caused oil and gas wells to freeze.
Traders said the biggest uncertainty for the market remains when Freeport LNG restarts its LNG export plant in Texas.
Gas futures are up about 76% so far this year, as rising global prices have fueled demand for US exports.
Natural Gas Technical Analysis
Technically, natural gas continues its attempts to gain positive momentum that may help it breach a bearish corrective slope line in the short term. This is shown in the attached chart for a (daily) period, which forced it to retreat at the end of last week's trading and the beginning of this week's trading, to be based in turn on It supported its simple moving average for the previous 50-day period. However, we notice a negative intersection with the relative strength indicators, after reaching overbought areas, which may hinder the price's progress in its future trading.
Therefore, our expectations remain neutral at that moment, waiting for the price's behavior towards the important 6.412 resistance level.
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