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Natural Gas Technical Analysis - Natural Gas Trading: 2021-08-02

Natural Gas Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Below 3.77

Sell Stop

Above 4.17

Stop Loss

Dmitry Lukashev
Senior Analytical Expert
Articles 1768
RSI Sell
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

Natural Gas Chart Analysis

Natural Gas Chart Analysis

Natural Gas Technical Analysis

On the daily timeframe, NATGAS: D1 approached the uptrend support line. It must be broken down before opening a position. A number of technical analysis indicators have formed signals for a decline. We do not exclude a bearish movement if NATGAS falls below the last lower fractal and the Parabolic signal: 3.77. This level can be used as an entry point. The initial risk limitation is possible above the high since December 2018 and the last high fractal: 4.17. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (4.17) without activating the order (3.77), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Commodities - Natural Gas

A cold snap is expected in the US, which could reduce the demand for electricity for indoor air conditioning. Will the NATGAS quotes go down?

Natural gas is widely used in the United States to generate electricity. In summer, electricity is used to cool indoor air. The National Oceanic and Atmospheric Administration predicts lower temperatures in the southern and eastern United States between August 4 and 8. Edison Electric Institute reported a 3.4% reduction in US power generation for the week (July 24) compared to the same week last year. U.S. The Energy Information Administration (EIA) announced an increase in US natural gas reserves for the week by 36 billion cubic feet. Exports of liquefied natural gas from the United States fell 1.9% over the week to 10.6 billion cubic feet. According to Baker Hughes, there are now 103 gas drilling rigs in the United States. This is well above the record low of July 2020 of 68 rigs.

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