Natural Gas Technical Analysis: Reaches Pivotal Support

We expect natural gas to rise during its upcoming trading.

Spot natural gas prices (CFDS ON NATURAL GAS) stabilized at a decrease in its recent trading at the intraday levels, to record slight daily losses until the moment of writing this report, by -0.34%. It settled at the price of $6.434 per million British thermal units. It reached -6.68%, and during the past week the price fell by -11.61%.


Nymex natural gas futures fell sharply over the past week, amid a poor near-term weather outlook. After the price touched a week high at $8,065 on Monday, the May contract settled on Friday at $6.534, which is part of an ongoing profit-taking technical correction.

Russia will investigate the cause of a major fire at an oil storage facility near the country’s border with Ukraine, Reuters reported on Monday. The facility in Bryansk caught fire in the early hours of Monday morning, with unverified footage on social media showing what appeared to be two explosions followed by a column of fire, the report said.

Reuters said in the report that the facility is owned by the Russian oil pipeline company Transneft. The news agency reported, citing the Russian Ministry of Emergency Situations, that no one was injured and there was no need for evacuations in any part of Bryansk.

On Thursday, the US Energy Information Administration reported an injection of 53 billion cubic feet, raising domestic inventories to 1,450 billion cubic feet, still 428 billion cubic feet below last year’s levels and 292 billion cubic feet below the five-year average.

The EIA said South Central stocks broken down by region rose by 33 billion cubic feet net, including 18 billion cubic feet in non-salt stocks and 15 billion cubic feet in salts. The Midwest added 11 billion cubic feet of storage, while the East added 9 billion cubic feet. Pacific stocks were flat during the week, and the Midwest pulled 1 billion cubic feet.

Technically, natural gas continued to decline in its recent trading in an attempt to search for a bullish bottom to take as a base. This might help it gain the necessary positive momentum to regain its recovery and rise again. It can reach its recent decline to rely on the pivotal support level of 6.412, in conjunction with the arrival of the relative strength indicators to very saturated areas. Selling operations, exaggeratedly compared to the price movement, which suggests that a positive divergence is beginning to be formed, especially with the emergence of a positive crossover in it.

All of this comes with the price’s trading along a major bullish slope line in the medium term, with the continuation of positive support for its trades above its simple moving average for the previous 50 days.

We expect natural gas to rise during its upcoming trading, especially in the event that the support level 6.412 remains intact, to target the first resistance levels at the price of 7.078.

Natural Gas

Leave a Reply

Your email address will not be published. Required fields are marked *

Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using xMetaMarkets services, please acknowledge all of the risks associated with trading.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions such as United States, Canada, Iran, Cuba, France, and some other regions, and is not intended for distribution to, or use by, any person in any countries or jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2018 - 2024 All Rights Reserved.