- Analytics
- Technical Analysis
Natural Gas Prices Technical Analysis - Natural Gas Prices Trading: 2017-07-06
Warmer US weather forecast is bullish for natural gas prices
Natural gas prices rise on warmer US weather forecast. Will natural gas prices continue advancing?
Natural gas prices are rising on warmer weather forecast in most of the US. Higher temperatures are expected to raise power consumption for air conditioning, resulting in higher demand for natural gas for power generation. Higher expected demand is bullish for natural gas prices.
On the daily timeframe the NATGAS: D1 has been rebounding following the rdecline after hitting six-month high in mid-May. The price has fallen below the 200-day moving average MA(200) which has levelled off.
- The Parabolic indicator has formed a buy signal.
- The Donchian channel indicates no trend yet: it is flat.
- The MACD indicator gives a bullish signal.
- The Stochastic oscillator is falling but has not breached into the oversold zone.
We expect the bullish momentum will continue after the price breaches above the upper Donchian bound at 3.11, confirmed also by the fractal high. This level can be used as an entry point for a pending order to buy. The stop loss can be placed below the fractal low at 2.926. After placing the pending order, the stop loss is to be moved to the next fractal low, following Parabolic signals. By doing so, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (2.926) without reaching the order (3.11), we recommend canceling the position: the market sustains internal changes which were not taken into account.
Technical Analysis Summary
| Position | Buy |
| Buy stop | Above 3.11 |
| Stop loss | Below 2.926 |
- Get Certificate
Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
