Jump to content

Natural gas looks likely to recover despite early pullback


MongiIG

Recommended Posts

Natural gas looks likely to recover despite early pullback

Natural gas weakens in early trade, but we have seen tentative signs that price might have bottomed out after latest selloff.

bg_gas_hob_870778.JPGSource: Bloomberg
 Joshua Mahony | Senior Market Analyst, London | Publication date: Monday 29 November 2021

Natural gas drops at the open, yet resurgence could be in the offing

Natural gas prices have dropped back at the beginning of trade this week, with price failing to maintain the sharp gains seen on Friday.

Expectations of further lockdowns did bring upside for gas, while a report from the US IEA stated that they had seen a 1.7% reduction in production set against a 6.8% rise in demand. Broader energy markets have suffered on the premise that crude demand would fall if the Omicron variant led to further lockdowns.

However, natural gas could benefit from such a scenario, with people instead staying at home to drive up heating demand through winter. The question around winter demand is an important one, with European inventories already well below levels typically seen at this time of the year. Relations between Europe and Russia are important on that front, with the flow of gas from Russia key to keeping a lid on prices.

However, with Russian troops at the border with Ukraine, there is a risk that there is a breakdown in relations between the West and Russia leading to the use of natural gas as a negotiating tool. Thus, with winter demand potentially driving down inventories and Russian exports coming into question, there is a good chance we see another turn higher despite the current pullback.

Pullback could bring buying opportunity

Friday’s rise through the $5.45 swing-high brings an end to the trend of lower highs seen over the course of the past month. With the latest low coming in to place at the key $4.76 support level seen in late-September, this looks like a good place for the price of natural gas to have bottomed out.

As such, a bullish outlook is in play here, with a break below that key $4.76 support zone required to negate that bullish view.

NG-4-hours-2021_11_29-12h19.pngSource: ProRealTime
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
  • image.png

  • Posts

    • Bitcoin's rally is fueling gains across the market. Here are 3 altcoins with breakout potential:   Fetch.ai (FET): Bullish triangle pattern hints at a surge to $3.48 or even $5 by month's end. Floki (FLOKI): Recent breakout suggests a climb to $0.00045, capitalizing on meme coin momentum. **** (****): Inverted head & shoulders pattern forming, potentially driving price to $0.000071.   Could these be the next big crypto moonshots, or are they headed for a fall? Read the full article here for a more detailed analysis of each altcoin, including charts and technical indicators: https://coinpedia.org/price-analysis/memecoins-for-3x-profits-by-the-end-of-may/
    • Bitcoin (BTC) is breaking out, surging nearly 10% in a week and reclaiming the $67,000 level. This bullish trend has ignited questions about whether a new all-time high, or even the psychological barrier of $100,000, is within reach. Key Points:   Post-Halving Rally Echo: The current surge resembles past post-halving rallies, where Bitcoin's price historically jumps after its block reward gets reduced. This scarcity could be driving the current upswing.   Technical Indicators Support Bullish Outlook: Daily charts hint at a potential breakout from a resistance trendline, signifying the end of a corrective phase. Additionally, bullish signals emerge from technical indicators like VI lines and ADX. Fibonacci Levels Suggest Six-Figure Target: Based on Fibonacci levels, a significant price increase is on the table. If the momentum holds, a moonshot to $100,000 this year seems achievable. However, some analysts predict a more conservative target of $77,842 by Q2 2024.   AI Predicts Bullish Q2, But How Bullish?:  The analysis incorporates predictions from ChatGPT. While many expected a bullish forecast, ChatGPT surprised with a potential rally to a staggering $87,613 by the end of June! Is Bitcoin on the cusp of a historic bull run, or is this just a temporary spike?   Read the full article here for a deeper dive into the technical analysis, expert opinions, and a closer look at the AI's prediction:  https://coinpedia.org/price-analysis/chatgpt-predicts-how-high-can-bitcoin-price-rally-in-q2-2024/    
    • Pepe, the meme coin, has dropped 12% after reaching record highs earlier this week. This has investors wondering if it's a good time to buy. Why Did Pepe Surge? The Pepe price jump was linked to the return of an online personality known as "Roaring Kitty," who was a key figure in the meme stock craze of 2021. This triggered excitement around Pepe, similar to what happened with meme stocks back then. Is Now the Time to Buy Pepe? Experts say it might be a bit early. While the price has dropped, it's still significantly higher than usual. Instead of buying now, investors might want to wait for a retest of a specific price point (around $0.00000920) which could offer better buying opportunities. Why Are Some Investors Still Bullish on Pepe? Despite the recent drop, many believe Pepe has room to grow. Here's why: Popularity: Pepe is gaining popularity, which could drive the price up. Market Cap: Compared to other meme coins like Dogecoin and Shiba Inu, Pepe's market cap is still relatively low. This means there's potential for significant growth.  
×
×
  • Create New...
us