FxWirePro: Natural Gas trades higher on rising demand, good to buy on dips
Natural gas breaks the pschycpsychologicaltance around $3 and jumped till $3.09.It has closed at $2.965. The commodity has once again risen back towards $3 on Monday, holding near a 20- month high. It is currently tradin…
Natural gas breaks the pschycpsychologicaltance around $3 and jumped till $3.09.It has closed at $2.965.
The commodity has once again risen back towards $3 on Monday, holding near a 20- month high. It is currently trading around 2.998.
The commodity has broken above $3 (Jul 1st 2016 high) due to speculative buying. Historic heat has caused record demand for natural gas at gas-fired electricity to power air conditioning.
The Farmer’s Almanac is forecasting more cold winter for the lower 48 United States. It has good track record for their Long term weather forecast.
If the forecast comes true then chance of changing from Natural Gas storage surplus to storage shortage is high.
Technically any continuous close above $3 will confirm major bullishness, a jump till $3.28 (161.8% retracement of $2.993 and $2.523)/$3.35 is possible.
On the lower side , $2.870 (21- day MA) will be acting as short term support and any violation below targets $2.739 (61.8% retracement of $2.519 and $3.094)/$2.670.
It is good to buy on dips around $2.990 with SL around $2.87 for the TP of $3.30/$3.35.
