Natural Gas Technical Analysis: Losing Negative Pressures


Spot natural gas prices continued to rise in their recent trading at the intraday levels, to achieve new daily gains until the moment of writing this report, after it advanced in yesterday’s trading by 7.19.

Advertisement

Russia’s Gazprom has declared force majeure on natural gas supplies to Europe for at least one major customer, Reuters reported on Monday, citing a letter from Gazprom. Declaration means that the company cannot fulfill delivery obligations due to unusual circumstances.

Meanwhile, IEA Executive Director Fatih Birol said on Monday in a published comment that the world is “going through the first real global energy crisis in history” and that the IEA has been warning for “many months and the situation is particularly precarious in Europe”.

He said that Europe “needs to do everything in its power to reduce the risks of a major gas shortage and rationing it, especially during the coming winter.”

Meanwhile, natural gas has historically been used mostly for heating, and has tended to fluctuate depending on how cold the winter gets. But it has become a prominent source of electricity in the United States and elsewhere. Heat waves in Europe including record temperatures expected in London and the United States this summer mean more people are using air conditioners, causing demand for electricity to rise.

Technically, the price managed in yesterday’s trading to breach the current resistance level 7.254, in light of the dominance of the main bullish trend in the medium term and its trading along a minor bullish slope line in the short term, as shown in the attached chart for a (daily) time period, with the continued presence of positive signals on the relative strength indicators. Despite reaching overbought areas, the price is trying in its recent trading to get rid of the negative pressure of the simple moving average for the previous 50 days.

Therefore, our expectations indicate more ascent for natural gas during its upcoming trading, provided that its upcoming trading is stable above the level of 7.254, to target the first resistance levels at 8.054.

Natural Gas

Ready to trade FX Natural Gas? We’ve shortlisted the best commodity brokers in the industry for you.

اترك تعليقاً

لن يتم نشر عنوان بريدك الإلكتروني. الحقول الإلزامية مشار إليها بـ *

Risk warning: Trading in Contracts for Difference (‘CFDs’) carries a high level of risk and can result in the loss of all your investment. As such, CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. For more information about the risks associated with trading CFDs please find and read our ‘Product Disclosure’.


Please recognize that this website is the only official website, please do not enter other clone websites through Internet search or advertisements.


© 2011 - 2024 TouchGlobalMarkets.com All Rights Reserved.

arArabic