Natural Gas Prices Reach Yearly Highs
According to the XNG/USD chart, natural gas prices have risen by approximately 13% since early November and this week hit a new 2024 high.
Factors Driving Bullish Sentiment (as reported by Reuters):
A sharp increase in global gas prices.
Forecasts of colder weather and higher heating demand in the United States.
Will Natural Gas Prices Continue to Rise?
From a fundamental perspective, the Energy Information Administration (EIA) forecast on 13 November predicts natural gas prices could peak in January 2025.
From a technical analysis standpoint of the XNG/USD chart, the $3.200 level is a critical resistance, having previously triggered price reversals in October (B) and June (not shown on the chart). Price movements since early August have formed a trend channel (shown in blue).
Bullish Arguments:
The $2.7 level serves as support, aligned with Fibonacci retracement levels, as the BC pullback is at 50% of the AB rise.
The $2.93 level has flipped from resistance to support (indicated by arrows).
Bearish Arguments:
Prices reversed sharply downward earlier this week from the $3.200 level, showing seller activity.
Reports indicate utilities are injecting gas into storage at faster-than-expected rates, suggesting stockpiles could meet increased cold-weather demand.
Bulls may attempt to keep prices within the blue channel and make further attempts to breach the $3.200 level. However, XNG/USD signals show that bears are ready to push back.
Read more: https://fxopen.com/blog/en/oa-natural-gas-prices-reach-yearly-highs/
Text source: Forex Trading Blog
