FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks

Natural gas prices rebounded from session lows bouncing near support of an upward sloping trend line. There was significant demand in February, which led to the second-largest weekly withdrawal in history. The weather is expected to remain mild across the mid-west and the east coast, which has put downward pressure on prices. U.S. natural gas rig counts moved up to 92 from 91 and were in line with expectations.

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 edged lower but settled well off the session lows. Prices tested trend line support near 2.70 but bounced. Resistance is seen near the 10-day moving average at 2.96. Prices are oversold. The fast stochastic is printing a reading of 10-below the oversold trigger level of 20 which could foreshadow a correction. Medium-term momentum is negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average crosses below the MACD signal line (the 9-day moving average of the MACD line.

Advertisement

Inventories Decline Substantially

The EIA reports that the robust demand for natural gas in mid-February led to the second-largest reported withdrawal of natural gas from storage in the United States. Weekly stocks fell by 338 billion cubic feet (Bcf) in the week ending February 19, 2021, nearly three times the average withdrawal for mid-February. A record amount of natural gas, 156 Bcf, was withdrawn during that week in the South Central region.

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