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Natural Gas Technical Analysis: Attacking Pivotal Resistance – 24 May 2022

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We expect more rise for natural gas during its upcoming trading.

Spot natural gas prices (CFDS ON NATURAL GAS) rose in their recent trading at the intraday levels, to achieve slight daily gains until the moment of writing this report, by 0.88%. It settled at the price of $8.787 per million British thermal units, after rising sharply during yesterday’s trading by amounting to $8.787 per million British thermal units. 8.44%.

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Natural gas futures rose on Monday, ending their two-day loss, as US exports gained more momentum and modest production to offset cooler near-term weather forecasts. June gas futures contracts in Nymex settled at $8.744 per million British thermal units, an estimated increase of 66.1 cents on the day. The July contract advanced by 64.9 cents to $8.827.

Production in the United States exceeded 95 billion cubic feet, according to Bloomberg estimates on Monday, marking an increase of more than 1.5 billion cubic feet from the previous week’s lows. However, production remained below the roughly 97 billion cubic feet the market is looking for to ensure adequate supplies for the summer as well as next winter.

Meanwhile, US LNG exports on Monday rose more than 13 billion cubic feet, after exceeding that limit last Friday.

While domestic weather demand eased some forecasts on Monday, there is not enough to allay concerns about natural gas consumption outstripping supply in the event of a hot summer.

Technically, the price is attacking the pivotal resistance level 8.870 with its recent rise. This is the level at which it recorded the last peak on May 6, amid the dominance of the main bullish trend over the medium and short term along a trend line. This is shown in the attached chart for a (daily) period, supported by its continuous trading above its simple moving average for the previous 50 days, in addition to the influx of positive signals on the relative strength indicators.

Therefore, we expect more rise for natural gas during its upcoming trading, but first it has to cross the resistance obstacle at 8.870, to target immediately after that the first resistance levels at 9.550.

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