Natural Gas: What Next After A Wobbly Wednesday?
NG
-5.79%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Please name your holdings portfolio
Type:
BUY
SELL
Date:
Amount:
Price
Point Value:
Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
Create New Watchlist
Create
Create a new holdings portfolio
Add
Create
+ Add another position
Close
Natural gas looks extremely indecisive, as the first two trading sessions this week were evident enough to trap bulls above $6.2. On Monday, the natural gas jumped above this pivotal point at $6.2 but could not find a breakout above the stiff resistance at $6.4.
Undoubtedly, this sudden surge in natural gas prices attracted big bears to remain in command on Tuesday and pushed the natural gas to hit the day’s low at $5.608 as the product glut and supply disruption since the Russian invasion in Ukraine has resulted in storage phobia in the U.S.
LNG prices recently have cooled as Europe’s gas storage levels rose to over 90% of target capacity and a slow start to winter.
On Wednesday, natural gas started to move upward but still looks uncertain to sustain above $6.086 as the selloff could trigger, as experienced by the bulls on Tuesday.
Natural gas futures daily chart.
In a daily chart, the natural gas has found a breakout above 26 DMA, currently at $5.969. But the exhaustion still looms here as on Wednesday, natural nas tested a high at $6.152, which is still below the sliding line.
A breakdown below 9 DMA, currently at $5.575, will be the first confirmation of the advent of a selling spree on Thursday and Friday this week as the International Energy Agency estimates European industrial gas demand fell by 25% in the third quarter from a year earlier.
Disclaimer:
