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Natural Gas: Anxiety At High Pitch

By Satendra SinghCommoditiesSep 27, 2021 02:16PM ET
www.investing.com/analysis/natural-gas-anxiety-at-high-pitch-200603196
Natural Gas: Anxiety At High Pitch
By Satendra Singh   |  Sep 27, 2021 02:16PM ET
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Natural gas prices surged in response to increasing signs of a global energy shortage at the start of the northern hemisphere winter heating season. Futures started this week with a gap-up in a follow-up move to the last trading session of the previous week. Undoubtedly, the current rally started in the aftermath of Hurricane Ida which damaged production facilities in the US.

Then sentiment turned bullish resulting in the natural gas price testing a seven-year peak of $5.644 on Sept. 15. The majority of natural gas traders hoped that natural gas would test the next psychological resistance of $6.

Undoubtedly upward moves by futures found some resistance at previously tested levels in the middle of September but remain near the seven-year peak.

In addition, China and Europe started to increase their stores of natural gas at any cost to fulfill growing demand ahead of their winter. This increased competition has propelled natural gas higher and I think that the sudden surge in coal prices may also be a result of demand for power ahead of the winter.

I do not expect the upcoming winter to be so severe that it will result in more Heating Degree Days. If Natural Gas futures do not remain above $5.644, a steep slide could follow driving prices down towards $4.931.

Natural Gas Futures Weekly Chart
Natural Gas Futures Weekly Chart

Natural Gas Futures Daily Chart
Natural Gas Futures Daily Chart

Natural Gas Futures 1 Hr. Chart
Natural Gas Futures 1 Hr. Chart


Disclaimer

1. This content is for information and educational purposes only and should not be considered as investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital be involved which you are prepared to lose.

2. Remember, YOU push the buy button and the sell button. Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from an investment and/or tax professional before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.

Natural Gas: Anxiety At High Pitch
 

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Natural Gas: Anxiety At High Pitch

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Comments (6)
my name
my name Sep 28, 2021 12:13AM ET
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you have to add more horizontal lines at your charts....
Piotr Andrew
Piotr Andrew Sep 27, 2021 11:08PM ET
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Its 6,14$ now LOL
Tom Marshall
Tom Marshall Sep 27, 2021 5:51PM ET
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Dear Mr. Singh, your analysis are always appreciated for me, however, at the time your posted this one, NG already broke the last resistance level at $5.644Actually today, it did an huge move even after the 2.30 pm (EST), which is quite unusual.How does it look for you now ?
Joseph Obrzut
jzut Sep 27, 2021 4:47PM ET
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I cannot wait to see this crash. This is SOO ridiculous.
Boubacar Jawo
Boubacar Jawo Sep 27, 2021 3:48PM ET
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Gábor Halász
Gábor Halász Sep 27, 2021 3:42PM ET
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Pffff
 
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Disclaimer: This analysis is purely based on the technical observations. I do not have any position in Natural Gas. One can create position in Natural Gas at his/her own risk.
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