NATGAS gains 4.5% due to weather ❄️

The Christmas period was one of the warmest on record, not only in Europe, but also in the US. That's why prices just before Christmas were very low. However, weather models began to show a coming change in late 2023 and early 2024, which augured a possible rebound. Not only have temperatures dropped, but subsequent weather forecasts show that heating demand should increase across almost the entire United States. 

More than two-thirds of the states are expected to see below-normal temperatures over the next two weeks. On the other hand, the east is seeing a return to slightly higher temperatures than forecasted on December 25. Source: Bloomberg Finance LP, NOAA

NATGAS opened the first session of the year with a bullish, upward price gap near $2.6/MMBTU. Today, the price has fallen slightly from its daily highs, but is still more than 4.5% higher from the previous close. Of course, there could be an attempt to close the gap, but the important support zone is the 23.6 Fibo retracement, where clear price reactions have been seen before.

Source: xStation5