Natural Gas Technical Analysis: Expect Price Decline

[ad_1]

Advertisement

It achieved slight daily gains until the moment of writing this report, by 2.53% to settle at the price of $7.664 per million. This is after declining sharply in last week’s trading, by -6.07%.

Natural gas prices fell last Thursday after three consecutive days of gains, with June futures in Nymex dropping 45.1 cents to $6.888 per million British thermal units, and July futures dropping 44.2 cents to 6.994 dollar.

NGI’s Spot Gas National Avg, which traded Thursday for gas delivery on Friday and Saturday despite the continuation of unstable weather in the eastern US, was down 50.0 cents to $6,570.

The US Energy Information Administration (EIA) said that US natural gas inventories rose by about 40 billion cubic feet in the week ending April 22, and economists polled by the Wall Street Journal had expected a rise of 38 billion cubic feet.

Production in the US has shown some signs of recovery, but during the ongoing maintenance season production may fluctuate over the next couple of months, Canadian imports were lower with Mexican exports rising slightly.

On the technical analysis side, we are expected to see a decline in the price to reap the profits of its recent rises and try to gain some positive momentum that may help it recover and rise again. This is in light of the dominance of the main bullish trend in the medium term along a slope line, as shown in the attached chart for a period (daily). This is in addition to the continuation of the positive support for its trading above its simple moving average for the previous 50 days.

Natural Gas

[ad_2]

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Your email address will not be published.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 xMetaMarkets.com. All Rights Reserved.