FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
45,471,123Confirmed
1,188,203Deaths
33,061,767Recovered
Fetching Location Data…
Advertisement
Advertisement
David Becker
Oil refinery

Natural gas prices tumbled on Monday dropping 5.3% but settling off the session lows. Prices dropped following a report from the National Oceanic Atmospheric Administration that shows the weather is forecast to be warmer than normal over the next 8-14 days. Most of the mid-west is covered with frigid temperatures, but expectations are for a warming trend that will likely reduce demand during the next 2-week period.

Technical Analysis

Natural gas prices tumbled slicing lower and bouncing near support at the 50-day moving average at 2.62. A break of this level would see a test of the October lows at 2.38. Resistance is seen near the 10-2.74. Short term momentum is turning negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index 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). The MACD histogram is printing in red with a declining trajectory which points to lower prices.

Advertisement

Demand Rose as the Weather Turned Cold

Demand surged in residential and commercial sectors. Total US natural gas consumption rose by 8% compared with the previous report week, according to the EIA. In the residential and commercial sectors, consumption increased by 40% as generally cooler temperatures prompted widespread demand for space heating for this first time this season in the Lower 48 states. Natural gas consumed for power generation declined by 4% week over week. Industrial sector consumption decreased by 3% week over week. Natural gas exports to Mexico decreased 1%.

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

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US