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Natural Gas’ highs find new lows

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The March natural gas futures on February 7th updated the 9-month minimum at around $ 2,550 per million British thermal units. Thus, the bearish trend continues from January 15th and the price of $ 3,370. The current mark is near a strong weekly level, which has served as an area of support since June 2016, so some traders are set to go long.

On the other hand, the cold season in the United States is coming to an end. A cyclone is forming in the northern part of the country, but due to the warm weather in the mid-west and in the east, it is expected that there will be no temperature imbalance. Thus, the extra demand from additional cold days will not be created, which this year has already reached 241 with an average value of 196.

On February 7, EIA published data on gas that showed the supply in storage facilities, the actual value of which almost coincided with the forecast and amounted to 237 billion cubic meters. Interestingly, after the publication of this data, a local trend began, which ended with an update of the 9-month minimum. This was strange given that the data showed the maximum number for this winter.

On one hand, we have a long bearish trend and a strong technical level of support, on the other hand, there is no fundamental prospect for buyers. And as practice has shown, it is fundamental/psychological factors that usually drive the situation forward.

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Source: https://olymptrade.com/
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