Jump to content

Natural gas pullback brings potential buying opportunity


MongiIG

Recommended Posts

Natural gas pullback brings potential buying opportunity

Natural gas has seen a rare pullback this week, but the ongoing uptrend and expectations of rising winter demand signal a potential buying opportunity.

bg_gas_pipes324383736.jpgSource: Bloomberg
 Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 30 September 2021 

Natural gas on fire over the course of 2021

Natural gas has been one of the biggest outperformers in a highly volatile commodity market, with the energy markets really gaining traction into a crucial winter period.

Demand is likely to continue its uptrend going forward as temperatures drop, with the chart below highlighting how we typically see residential consumption surge over the winter period.

NAT_GAS_CONSUMPTION.pngSource: US EIA

 

Meanwhile, that rise in demand puts pressure on supplies, with any ongoing struggles from a supply perspective likely to dial up in the coming months.

NAT_GAS_STORAGE.pngSource: US EIA

Pullback brings potential buying opportunity

The wider chart highlights just how impressive this bull run has been, with the price of natural gas bringing us into a seven-year high.

While we are obviously heavily stretched, it makes sense to expect this to continue until price tells us otherwise.

NG-Weekly30921.pngSource: ProRealTime

 

The intraday chart highlights how we have seen a sharp decline this week, providing a potential opportunity for bulls. A break below the $47.60 level would bring a more neutral/bearish outlook for the near-term.

However, until that happens this latest 61.8% Fibonacci retracement provides us with a potential buying opportunity within a remarkably reliable uptrend.

NG-4-hours30921.pngSource: ProRealTime
  • Like 1
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,295
    • Total Posts
      90,940
    • Total Members
      41,426
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    kskowi
    Joined 08/02/23 08:14
  • Posts

    • A late rally in the US has put some fight back into equities, pointing to a positive open for European stocks after an indecisive session yesterday. Jerome Powell reiterated the need for more rate hikes, without walking back any of his comments on disinflation at last week's Fed meeting, leaving the dollar a touch weaker. After the hurly-burly of last week's action-packed sessions, this week is quiet by comparison, with little major data out today aside from weekly crude oil inventories, plus earnings from Disney and Uber.  
    • For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK. Today’s coverage: Indices: European mkts expected up. FTSE100 24hr mkts another new record high FX: Little move despite Powell saying more US rate rises needed to combat inflation Equities: Earnings this morning - BDEV PZ SVT TTE.  VOW last night a disappointment. This evening - UBER DIS. ZOOM announces 15% cut in global workforce Commods: Gold up for third day.  Oil up after API drop in inventories. NY orange juice another new record high        
    • Elliott Wave Analysis TradingLounge Daily Chart, 8 February 23,   Uniswap / U.S.dollar(UNIUSD) UNIUSD Elliott Wave Technical Analysis Function: Follow trend     Mode: Motive Structure: Impulse Position: Wave III Direction Next higher Degrees: wave III of Motive Details: Wave 3 rise is likely towards the level of 15.37 Wave Cancel invalid Level: 4.946 Uniswap / U.S.dollar(UNIUSD)Trading Strategy: Uniswap is likely to recover well as price breaks through the MA50 and MA200 are bullish signals. and leads to the movement of wave III that is usually equal to 1.618 x the length of wave I at the level of 15.371. Uniswap / U.S.dollar(UNIUSD) Technical Indicators: The price is above the MA200 indicating an uptrend. The wave oscillators above Zero-Line momentum are bullish. TradingLounge Analyst: Kittiampon Somboonsod     Elliott Wave Analysis TradingLounge 4H Chart, 8 February 23,   Uniswap / U.S.dollar(UNIUSD) UNIUSD Elliott Wave Technical Analysis Function: Counter trend     Mode: Corrective Structure: Flat Position: Wave (B) Direction Next higher Degrees: wave ((2)) of Motive Wave Cancel invalid Level: 4.95 Details: Pullback of wave (B) when end, the price decline to wave (C)again. Uniswap / U.S.dollar(UNIUSD)Trading Strategy: Uniswap There is a strong recovery trend when the price breaks MA50 and MA200 is a good sign. But nevertheless, the price is in a phase of retracement in wave (2), when it finishes, the price resumes upward trend. Wait for wave ((2)) to complete. Uniswap / U.S.dollar(UNIUSD)Technical Indicators: The price is above the MA200, indicating an uptrend. The wave oscillators below Zero-Line Bearish momentum.
×
×
  • Create New...