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​​​​​​​​​​Natural gas slumps into confluence of support following Putin comments​​​​​​​​​​


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Natural gas slumps into confluence of support following Putin comments

Natural gas drops into key support after recent Putin comments, but will this mark the end of the recent surge?

bg_gas_pipes324383736.jpgSource: Bloomberg
 Joshua Mahony | Senior Market Analyst, London | Publication date: Monday 11 October 2021 

Natural gas tumbles back into trendline support

Natural gas has been hit hard since Russian President, Vladimir Putin’s pledge to ramp up sales to Europe saw its dramatic rise come to an end.

The pullback has continued apace today, with price falling back below the October low of $54.39. That decline has taken us into the confluence of two trendlines of support. With the $53.51 swing-low from late-September accompanying those ascending and descending trendlines, this zone of support looks like a notable crossroads for the day ahead.

A head and shoulders formation comes into play below this zone, with $51.71 and $47.60 providing the next support levels of note.

NG-4-hours111021.pngSource: ProRealTime

 

Looking at the wider monthly chart, we can see that this recent high does provide a potential reversal point given that this recent rise reached the same $64.93 resistance level established back in early 2014.

With that in mind, there is a good chance we see further near-term downside, with a break up through the $59.26 swing-high required to bring greater confidence that the bullish trend will come back into play.

NG-Monthly111021.pngSource: ProRealTime
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