Natural Gas Price Hits 3-Month High
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
Read more: https://fxopen.com/blog/en/oa-natural-gas-price-hits-3-month-high/
Text source: Forex Trading Blog
