The price of gas in the US and in Europe continues to decline, despite still high uncertainty about the winter. Of course, preliminary weather forecasts show that the approaching winter in North America and Europe may be mild. On the other hand, long-term weather forecasts are even more unpredictable compared to the financial markets themselves.
The price of gas in the US is below $ 7 / MMBTu and is at its lowest since mid-July. Moreover, the price of gas has dropped below the 61.8% Fibonacci retracement of the last upward wave, which nullified the entire bullish momentum. In addition, last week buyers managed to break through the neck line of the head-to-shoulder formation.
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Create account Try a demo Download mobile app Download mobile appSeasonality indicates that a potential low may occur around October 9, before the start of the heating season. Of course, the price is relatively high compared to pre-pandemic levels, but on the other hand, the regression line of the post-covid recovery has already been broken, giving the market bulls some hope before the heating season begins. Moreover, the price is approaching the key support zone around $ 6.3 / MMBTU, which is marked with previous price reactions.
Source: xStation5
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