âŽNatural gas price reached highest level since February 2014
NATGAS prices rose more than 28% to nearly $5.60 per million British thermal units in September, due to concerns over supply constraints ahead of the winter season. Recent data showed that US production averaged 46bcf during summer months, while the level of production in the same period last year reached 52bcf level and was caused by the uncertainty surrounding the pandemic. Meanwhile, stockpiles in Europe have dropped to historically low levels for this time of year. By contrast, China's gas imports have almost doubled from last year, and Brazil's imports are also close to a record high as the country is facing the worst drought in 91 years, having a negative impact on hydropower production.
NATGAS remains in an uptrend. Looking at the D1 interval, we see buyers attacking mid-month highs. Should a break higher occur, the upward move may accelerate towards Fibonacci's external retracements - 127.2% and 161.8%. On the other hand, if sellers manage to regain control, the zone at 4.76 should act as the first line of support. Only its negation could lead to a change in sentiment and the beginning of a downtrend. Source: xStation5
