The price of natural gas is rising ahead of the coming storm
U.S. natural gas prices rose about 4% on Tuesday as oil and gas producers cut output ahead of a hurricane expected to hit Louisiana on Wednesday
Natural gas chart analysis
U.S. natural gas prices rose about 4% on Tuesday as oil and gas producers cut output ahead of a hurricane expected to hit Louisiana on Wednesday. The price formed a new weekly high at the $2.42 level. During this morning’s Asian trading session, the movement took place around the $2.40 level. The bullish sentiment still prevails on the chart, based on which we expect to see further growth and the formation of a new weekly high.
Potential higher targets are $2.44 and $2.46 levels. For a bearish scenario, the price would have to pull back below the $2.40 daily open price first. Thus, we move to the bearish side and expect the formation of a new daily low. The first support is at $2.38 in the EMA 50 moving average. The inability to sustain natural gas there will lead to further withdrawals.
For the third week in a row, the price is in a bullish trend and above the EMA 200 moving average
Lower potential targets are the $2.36 and $2.34 levels. A bit further down in the $2.32 zone, we will test yesterday’s low and the EMA 200 moving average. This moving average, a steadfast support since the beginning of September, continues to bolster our confidence.
Finance company LSEG reported that gas production in the lower 48 US states averaged 102.2 billion cubic feet per day in September, a slight decrease from 103.2 in August. On a daily basis, production is expected to dip by 2.9 to a preliminary 16-week low of 99.9 bcfd on Tuesday. However, all eyes are on the impending storm that could potentially disrupt both supply and demand for natural gas, necessitating heightened vigilance and preparedness.
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