FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks

Natural gas prices rallied 3.5% on Thursday following a smaller than expected build in natural gas inventories. Strong than expected US jobs data helped lift natural gas. With several states scaling back their reopening up efforts, the demand for electricity is likely to remain subdued as few commercial buildings are likely to come back up during this period.

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 rallied 3.5% but were unable to push through trend line resistance that comes in near 1.74. Support is seen near the 10-day moving average at 1.68. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has also turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.

Advertisement

Natural Gas Inventories Rise Less than Expected

Natural gas in storage was 3,077 Bcf as of Friday, June 26, 2020, according to the Energy Information Administration. This represents a net increase of 65 Bcf from the previous week. Expectations were for a 75 Bcf build according to survey provider Estimize. Stocks were 712 Bcf higher than last year at this time and 466 Bcf above the five-year average of 2,611 Bcf. At 3,077 Bcf, the total working gas is within the five-year historical range.

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