Natural Gas has shown a huge decline after making a high 3.342 on Apr 5th 2017.The commodity retreated after the forecasts of more mild spring like temperatures. It has declined till 3.110 on Apr 18th and slightly recove…
Natural Gas has shown a huge decline after making a high 3.342 on Apr 5th 2017.The commodity retreated after the forecasts of more mild spring like temperatures. It has declined till 3.110 on Apr 18th and slightly recovered from that level.
On the supply front U.S natural gas production remains below 70 Bcf/d due to maintenance and is expected to rebound back to 70.7 Bcf/d within three weeks. Mexican gas exports are averaging at 2.6 Bcf/d down from 4.2 Bcf/d .
Technically ,the near term support is around 3.10 (55- day EMA) and any break below will drag the commodity down till 3.0255 (55- day EMA)/2.98 (Mar 23rd 2017 low).
On the higher side , minor resistance is around 3.25 (61.8% retracement of 3.342 and 3.110) and any break above targets 3.340/3.48/3.51.It should break above 3.51 for further bullishness.
It is good to sell on rallies around 3.25 with SL around 3.350 for the TP of 3.02/2.98.
