FXOpen
Since November 1, the price of natural gas has fallen by more than 30%. This was facilitated by:
→ relatively mild weather at the beginning of the winter period;
→ record volumes of liquefied gas production, as reported by Reuters. Analysts estimate there is currently about 7.8% more gas in storage than normal for this time of year.
On December 13, the price of natural gas dropped below 2.20 for the first time since the beginning of June. This level may provide support given how price has interacted with it throughout 2023.
At the same time, the graph shows that the price of natural gas:
→ is within a downward trend (shown in red);
→ On December 11, a surge in demand was noticed on the market (shown by the arrow) — it is possible that it was caused by a low price and the expectation that in the future the price of gas could rise until the end of winter;
→ the median line still offers resistance;
→ RSI forms divergence.
Thus, there are reasons to believe that the level of 2.20 may be able to stop the downward trend. And even to provide support for a rebound if the weather becomes colder and causes an increase in gas consumption.
Start trading commodity CFDs with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Sterling Consolidates Ahead of the Bank of England Decision
Sterling is consolidating as markets await the Bank of England’s interest rate decision, while investors’ attention is gradually turning to tomorrow’s meeting of the Bank of Japan. The UK currency is moving cautiously, as markets have largely priced
Analysis of the Volatility Spike on the BTC/USD Chart
Yesterday, the BTC/USD chart saw sharp price swings during the US trading session:
→ first, Bitcoin rose by more than 3%;
→ shortly afterwards, it dropped by over 4%.
The main impulses unfolded within just a few hours and triggered liquidations
The US Dollar Index (DXY) Rebounds from a Two-Month Low
A week ago, we:
→ updated a system of two trend channels;
→ identified signs of selling pressure dominance;
→ outlined a scenario in which price could slide towards the lower boundary of the blue channel, potentially acting as key support.
As the