FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks

Natural gas prices surged more than 11% on Monday, following a report that showed that hedge funds added more than 28K contracts in the prior week. This appears to be a short-term squeeze in prices, as it’s unclear if demand will rebound with some many businesses have yet to reopen due to the spread of COVID.

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 surged higher on Monday rising more than 11% and slicing through resistance which is now short-term support near the 10-day moving average at 1.68. Resistance is seen near a downward sloping trend line that comes in near 1.77. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal in overbought territory. Medium-term momentum is neutral but attempting to turn positive. The MACD histogram is printing in the red with a rising trajectory which points to consolidation.

Advertisement

Hedge Funds Add to Long Positions

Hedge funds added to long positions by increasing their open interest in futures contracts by 28K last week while increasing short positions by less than 1K. The total open interest in long positions is now 251K contracts compared to open interest in the managed money space that is short which is 281K contracts.

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