NATGAS is trading over 5% lower today, with US financial media pointing to a slightly cooler weather. On the other hand, looking at the 6-10 day weather forecasts, it is supposed to be basically hotter, and only in the 8-14 day forecast do we observe a significant drop in temperatures in the Midwest region. On the other hand, temperatures on the entire West Coast are expected to be high. At the same time, looking at the cooling degree day forecast, we do not see a large deviation from the averages. The key cooling period is the second half of July and the first half of August. This is when the largest seasonal increases in natural gas prices occur. Meanwhile, seasonality indicates possible short-term declines and a local low in the first half of June.
From a technical point of view, we can see that NATGAS pulls back from a key resistance area, marked with downward trend line and the range of the biggest upward correction in current impulse. Price is testing the 23.6% retracement of the last upward wave. If it falls below this support and the 14-session moving average, the correction may deepen to as low as $2.2 per MMBTu, where the 150-session moving average is located.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
