FXOpen
According to today's XNG/USD chart, the price of natural gas:
→ has risen by approximately 30% since the beginning of September;
→ is currently around the 2.95 level – the last time the price was at this level was at the end of June this year.
Bullish sentiment is supported by:
→ forecasts of a warmer autumn, which is increasing demand for natural gas to power air conditioning systems;
→ concerns related to Hurricane Helen in the US Gulf of Mexico. According to the EIA, 5% of total US dry natural gas production comes from the Gulf of Mexico, and 51% of the total capacity of US natural gas processing plants is located along the US Gulf Coast.
Technical analysis of the XNG/USD chart shows that in September, the price has been moving within an ascending channel (marked in blue).
It is noticeable that from the 20th onwards, demand forces have intensified, leading to the following:
→ the price broke through the 2.64 resistance level;
→ the price moved to the upper half of the ascending channel, after which its median line began to show signs of support;
→ the RSI indicator reached overbought territory.
Currently, there are no signs on the XNG/USD chart of bears attempting to seize control, while the bulls may be "gathering strength" for a possible attempt to break through the psychological level of 3.00. If this happens and is successful, it could pave the way towards the yearly high in the 3.20 region
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
XBR/USD Chart Analysis: Price Rebounds from a Seven-Week Low
On 1 December, we outlined a descending channel on the XBR/USD chart and noted that the bearish trend was driven by fading geopolitical risks. Indeed, hopes for an end to the war in Ukraine—along with the possibility of
Silver Price Hits Historic Record Around $64
On 27 November, we suggested that silver was preparing to challenge its all-time high. Since then (marked with the orange arrow), XAG/USD has risen by roughly 18%, breaking above the psychological $60-per-ounce threshold for the first time in history.