The price of natural gas in USD rose sharply on Thursday after the US Energy Information Administration (EIA) reported a slightly smaller-than-expected weekly increase in domestic natural gas inventories.
At the same time, an important breakdown of the contracting triangle pattern formed by 2 lines (shown in blue) has formed on the XNG/USD natural gas chart.
Presumably, this triangle delineates a market stage in which large players could accumulate long positions at low prices after the downtrend that has been in place in the natural gas market since the beginning of 2023.
On Friday morning, the bulls are able to keep the progress made, keeping the price of XNG above the former resistance at 2.575, which can now serve as support.
This breakdown may become a stage in the development of an important bullish trend. We previously reported that according to EIA forecasts, the average price of natural gas in 2023 could exceed USD 4.
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