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The bear market for gas continues

Olymp Trade

Natural gas continues to fall. The last time the asset was worth this little was in April 2018. Today, the March futures on the NYMEX traded at $2,639 / MBE. Now we can observe a small correction in play, the bulls tried to storm $2,700, but they did not succeed.

Interestingly, the last push of the bearish trend, which brought quotes to new lows, began last Thursday. The EIA statistics on natural gas reserves in the U.S. were published. Reserves fell below expectation to -173B, though they were forecast to be -189B. Due to this data, a downward trend began.

Apparently, everything is understood through comparison. Last year the winter was colder, more gas was consumed, and the market volatility was much lower. Now despite the volatility, natural gas is very close to the level of $2,500 / mTU, which it has not dropped below since the spring of 2016. This can be considered the last frontier, after which the asset begins will enter a strong oversold zone.

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Source: https://olymptrade.com/
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