FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks

 

Natural gas prices whipsawed initially moving lower and then rising into the close of the session. Prices were buoyed following a smaller than expected build in natural gas inventories. Hurricane Zeta battered the New Orleans coast and has been downgraded to a post-tropical depression. There is another storm that is entering the Caribbean that has a 20% chance of becoming a tropical cyclone according to NOAA. The weather is expected to be warm and moderate over the next 2-weeks, reducing the need for heating demand.

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 tested support near the 50-day moving average and rebounded to close nearly unchanged. Resistance on the December contract is seen near the October highs at 3.35. Prices are moving sideways and momentum is neutral. The fast stochastic is printing in the middle of the neutral range and the MACD histogram is moving sideways with a flat trajectory.

Advertisement

Inventories Rise Less than Expected

Natural gas in storage was 3,955 Bcf as of Friday, October 23, 2020, according to the EIA. This represents a net increase of 29 Bcf from the previous week. Expectations were for a 46 Bcf build according to survey provider Estimize. Stocks were 285 Bcf higher than last year at this time and 289 Bcf above the five-year average of 3,666 Bcf. At 3,955 Bcf, total working gas is above the five-year historical range.v

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