Natural Gas Technical Analysis Summary
Buy Stop։ Above 4,68
Stop Loss: Below 3,63
Natural Gas Chart Analysis
Natural Gas Technical Analysis
On the daily timeframe, NATGAS: D1 came up out of the downtrend. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish move if NATGAS: D1 rises above the upper Bollinger band and its latest high of 4.68. This level can be used as an entry point. Initial risk cap possible below Parabolic signal, 200-day moving average, and latest down fractal: 3.63. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit / loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (3.63) without activating the order (4.68), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities – Natural Gas
Cooler temperatures are expected in the US. Will the NATGAS quotes continue to grow?
Cold weather in the eastern and central United States could continue into mid-February, according to Commodity Weather Group. The Edison Electric Institute reported that in the week ending January 22, US electricity production increased by 10.3% y/y. According to the U.S. Energy Information Administration (EIA), U.S. natural gas inventories fell 10.1% y/y over the week and are now 1% below their 5-year average. Another positive factor could be an increase in US liquefied natural gas (LNG) exports by about a third compared to January last year. Moreover, EIA predicts that for the whole of 2022 it will increase by 2 times compared to 2021. Note that the demand for American LNG has increased significantly in Europe due to the risks of new anti-Russian sanctions against the backdrop of disagreements between NATO, Ukraine and Russia. According to Eurostat, the share of Russian gas in European consumption reaches 40%.