logo |

News

    Home   >     Industry    >     Main body

    Natural Gas Holds Key Technical Support, Path of Least Resistance Remains Higher

    Abstract:NATURAL GAS, ENERGY, INFLATION, WHITE HOUSE, FEDERAL RESERVE, INFLATION – TALKING POINTS

      Natural Gas Holds Key Technical Support, Path of Least Resistance Remains Higher

      NATURAL GAS, ENERGY, INFLATION, WHITE HOUSE, FEDERAL RESERVE, INFLATION – TALKING POINTS

      Natural gas futures climbed as much as 7% on Thursday before cooling off

      Forecasts for milder weather across the US eased upward momentum

      Inventories remain low, with stockpile growth offering a negative surprise

      Natural gas prices continue to climb as market participants grow weary of low stockpiles ahead of the winter season. Global energy prices have soared of late, with large supply shortages now threatening the post-pandemic economic recovery. Major factories have been forced to close across Europe as rising energy costs have reduced the ability to produce products profitably. Rising gas prices have caught the attention of the White House, with top officials meeting to discuss solutions to alleviate domestic price pressures.

      WEEKLY US NATURAL GAS INVENTORIES

    Natural

      Courtesy of the EIA

      A US government report Thursday showed natural gas inventories posted a smaller-than-expected gain, further stoking fears of a widespread shortage over the winter months. For the week ending 10/8, inventories grew by 81 billion cubic feet (Bcf), short of the median Bloomberg estimate of 94 Bcf. The current month futures contract reached an intraday high of $5.964 per million British thermal units, but settled lower as mild temperatures look set to sweep across much of the United States in the coming days. An additional report from the Energy Information Administration noted that US homeowners could be facing the highest winter energy bills since 2007-08, which will place additional pressure on the Federal Reserves “transitory” stance on inflation.

      HENRY HUB NATURAL GAS FUTURES (DAILY TIMEFRAME)

    Natural

      Chart created with TradingView

      Natural gas futures crucially held key trendline support during the recent pullback, indicating that the uptrend may continue in the near-term. Front-month futures pulled back in early October after a brief test of the 2014 high of $6.493, finding support in the form of an ascending trendline. With the uptrend remaining intact, price may look to break back above $6.00 en route to a retest of the 2014 high. The fundamental outlook remains constructive for higher prices, despite efforts by politicians to increase supply to the market. Should price reverse lower through trendline support, price may gravitate toward the psychological $5.00 level before it eyes the 50-day moving average below.

      RESOURCES FOR FOREX TRADERS

      Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

    pasted
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.