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Natural Gas Prices Technical Analysis - Natural Gas Prices Trading: 2021-08-16
Natural Gas Technical Analysis Summary
Below 3.83
Sell Stop
Above 4.21
Stop Loss
| Indicator | Signal |
| RSI | Sell |
| MACD | Sell |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Sell |
| Bollinger Bands | Neutral |
Natural Gas Chart Analysis
Natural Gas Technical Analysis
On the daily timeframe, NATGAS: D1 broke down the uptrend support line. A number of technical analysis indicators have formed signals for a decline. We do not exclude a bearish movement if NATGAS falls below the last lower fractal: 3.83. This level can be used as an entry point. The initial risk limitation is possible above the last fractal high, the maximum since December 2018 and the Parabolic signal: 4.21. After opening a pending order, move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit / loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (4.21) without activating the order (3.83), 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
In the United States, natural gas reserves have increased and air temperatures have dropped. Will NATGAS quotes continue to decline?
Commodity Weather Group predicts a decrease in US air temperatures, which could reduce demand for electricity for air conditioning. Natural gas is used to generate electricity. According to preliminary estimates for August, the Michigan Consumer Sentiment indicator fell to its lowest level since December 2011 at 70.2 points. This may indicate an additional decrease in the demand for electricity for air conditioners from the US population. According to the U.S. Energy Information Administration (EIA), US natural gas reserves increased by 49 billion cubic feet over the week. This is more than expected (47 Bcf) and above the 5-year average (42 Bcf). According to BloombergNEF, consumption of natural gas in the United States last week decreased by 3.9% compared to the same week last year, while gas production increased by 2.5%.
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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
