- Spot natural gas prices (CFDS ON NATURAL GAS) fell during their early trading on Thursday.
- It recorded slight daily losses until the moment of writing this report, by -0.08%.
- It settled at a price of $2.466 per million British thermal units, after falling during yesterday’s trading by 0. -3.89%.
Natural gas futures tumbled on Wednesday, losing for the second consecutive session, as analysts expected another weak reading in US government inventories. Traders began to look beyond the late winter cold snap and towards likely mild spring weather.
Nymex gas futures for April settled at $2.439 per million British thermal units, down 13.4 cents on the day, while the May contract fell 14.4 cents to $2.546.
Market focus will now turn to the US Energy Information Administration's (EIA) Weekly Inventories report due later in the day, which will cover the week ending March 10, as analysts expect another negative reading for the most recent period.
In its latest inventory assessment, the EIA reported a draw of 84 bcf for the week ending March 3, well below the five-year average decline of 101 bcf. Inventories totaled 2,030 bcf, up 359 bcf from the five-year average, While analysts expect inventories to range from 49 to 76 billion cubic feet.
Natural Gas Technical Analysis
Technically, the main bearish trend in the medium and short term, along a slope line, dominates the movement of natural gas. This is shown in the attached chart for a period (daily), with the continuation of the negative pressure for its continuous trading below the simple moving average for the previous 50-day period.
In addition to that, we notice the presence of signals of the negativity of the relative strength indicators, after earlier reaching highly overbought areas.
Therefore, we expect more declines for natural gas during its upcoming trading, especially as long as it stabilizes below 2.748, targeting the psychological support level of 2.00.
Ready to trade Natural Gas Forex? We’ve made a list of the best commodity trading brokers worth trading with.