FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks

Natural gas prices moved higher closing up 1%, and settling higher by 6.2% for the week. The weather is expected to be cooler than normal for most of the mid-west for the next 6-days days and then moderate. In late January through mid-February, significant colder-than-normal temperatures in the Lower 48 states resulted in increased heating demand for natural gas in the United States.

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 on Friday. Resistance is seen near the 50-day moving average at 2.72. Support is seen near the 10-day moving average at 2.56. Medium-term momentum is 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). Prices are overbought. The current reading on the fast stochastic is printing near 94, above the overbought trigger level of 80, foreshadowing a correction.

Advertisement

The weather was cold in January through February

In late January through mid-February, significant colder-than-normal temperatures in the Lower 48 states resulted in increased heating demand for natural gas in the United States, despite an otherwise warmer-than-normal winter. As a result, the winter had larger-than-average winter natural gas withdrawals. Before the cold snap, winter temperatures had been relatively mild, but a combination of increased heating demand, record liquefied natural gas and pipeline exports, and decreased natural gas production contributed to the withdrawal activity during February.

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