FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks

Natural gas prices moved higher on Tuesday but continue its volatile trading whipsawing lower and then moving higher. After today’s close, the June contract became the prompt contract. The premium to the May was approximately 10-cents per mmbtu. The weather is expected to be cooler than normal in the east and warmer than normal in the west, but the seasonal nature of April as a shoulder month is expected to yield little demand. In fact demand declined in the latest week driven by declines in power generating.

Advertisement
Know where Natural Gas is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Technical Analysis

Natural gas prices moved higher rising nearly 1.5% but closed well off the season highs. Short term support is seen near the 10-day moving average at 1.93. Additional support is seen near an upward sloping trend line that comes in near 1.77. Resistance is seen near a downward sloping trend line that is seen near 2.09. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is neutral as the MACD (moving average convergence divergence) histogram is printing near the zero index level with a flat tractor which reflects consolidation.

Advertisement

Demand Declines in Latest Week

Natural gas demand falls, driven by declines in power generation. Total U.S. consumption of natural gas fell by 3% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation declined by 6% week over week. Industrial sector consumption decreased by 3% week over week. In the residential and commercial sectors, consumption remained at last week’s level, averaging 22.1 Bcf per day. Natural gas exports to Mexico increased 3%.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker