Energy Central Professional

 

Natural Gas: Fall from Long-Term Highs May Not Stop Trend - 12 October 2021


info@dailyforex.com  

 

    [CAD:EN - 2 - Open account]

    Natural gas, as of this writing, is near the 5.350 level after experiencing a volatile day of trading yesterday and falling from a high of nearly 5.880.Natural gas remains within the upper realms of its long-term price range, and it should be remembered that on the 6th of October a high of approximately 6.520 was touched. To put the current price ratios of natural gas into perspective, the last time the value of the commodity touched these highs was in February of 2014.

    Another historical note of significance is that natural gas is flirting slightly below values it has not actually seen sustained trading since the calendar years between 2003 and 2008, when natural gas production was much lower than it is now.Technically, natural gas came off highs this early October as a flurry of nervous sentiment cascaded through the energy sector led by media coverage that European nations could suffer from shortages of the commodity this winter.; ;

    Yesterday’s prices in WTI Crude Oil did hit high water levels not seen for a long time, but importantly, natural gas didn’t actually react or correlate to its counterpart.Natural ;gas prices do not dance in a ‘lock step’ with the price of crude oil. However, the upper realm natural gas is traversing has shown a sincerely strong bullish trend like other energy commodities since late last year.

    Support near the 5.300 juncture should be monitored by traders and, if this level proves vulnerable, a test lower to the 5.200 mark could develop.However, speculative bulls may look at any strong movement downward as a potential buying opportunity with their sights set on reversals higher. If natural gas begins to incrementally step higher and the 5.450 level begins to be challenged, it could signal additional buying momentum could ensue.

    Yesterday’s sell off in natural gas may attract speculators who believe the long-term trend of the commodity still have power to generate. ;Traders are advised to use risk management wisely, because natural gas can produce volatile trading with swift changes in direction. Buying natural gas on slight reversals lower by traders and looking for upside action remains the logical speculative wager near term.

    Natural Gas Short-Term Outlook

    Current Resistance: 5.460

    Current Support: 5.290

    High Target: 5.750

    Low Target: 5.190

    Original Source DailyForex.com provides daily fundamental and technical analysis and signals for those looking to trade based on trends in the currency markets.

TOP


Copyright © 1996-2021 by CyberTech, Inc. All rights reserved.
Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.