Jump to content

Natural gas spikes higher as Europe cold snap takes shape


Recommended Posts

Natural gas breaking higher, with a European cold snap bringing about a fresh upward turn for energy

bg_gas_hob_870778.JPGSource: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 08 December 2022 

Natural gas arrests decline as European weather turns

Natural gas has finally started to show signs of strength after a dramatic two-week sell-off that saw the price of US gas lose 34%. Crucially that has taken price back into the crucial $5.329 support level established in mid-July. However, we have started to see the bulls come back into play since the Tuesday low, with price currently 10% above that level. This comes in anticipation of a cold snap that has started to sweep across Europe. The chart below highlights how Northwest Europe looks set for a period where temperatures are below the norms for this time of the year. The UK looks particularly interesting, with temperatures expected to move sub-zero in the coming week.

Weather81222.pngSource: Bloomberg

Rebound from support brings potential gains ahead

Natural gas prices are on the front foot once again today, with price heading back up to the $6 level. The bullish engulfing pattern confirmed yesterday brings the potential for a recovery phase coming into play from here. With that in mind, there is a good chance that we are set for a period of upside as price recovers lost ground. A break back below the $5.329 support level would be required to bring a fresh eight-month low and signal the continuation of the recent sell-off.

NG-Daily-2022_12_08-15h19.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

    • Güncel dönemde Binance rəfərans kod UL2M4EB8 olarak belirlendi. Bu kod %20 komisyon indirimi ve 600 usd değerinde kayıt bonusları içerir. Hemen binance borsasına kayıt ol ömür boyu avantajlı üyeliğin tadını çıkar. rəfərans kod, binance borsasında yeni üyelere çeşitli avantajlar sağlayan bir linktir.
    • Dans la période actuelle, le code de parrainage Kucoin est déterminé comme « QBST7VQS ». Il s'agit du code de parrainage le meilleur, le plus élevé et valable à vie au monde. Faites un pas avantageux dans l'échange Kucoin en tapant « QBST7VQS » dans le champ du code d'invitation lors de votre inscription. Le code de parrainage Kucoin « QBST7VQS » est un numéro personnel unique à chaque utilisateur Kucoin et se trouve à la fin de chaque lien de parrainage. Cette identité facilite toutes sortes de suivis sur la plateforme, notamment les demandes concernant le programme de parrainage.
    • In de huidige periode wordt de Kucoin-verwijzingscode bepaald als "QBST7VQS". Het is 's werelds beste, hoogste en levenslang geldige verwijzingscode. Neem een voordelige stap in de Kucoin-uitwisseling door tijdens het registreren "QBST7VQS" in het uitnodigingscodeveld te typen. De Kucoin-verwijzingscode "QBST7VQS" is een persoonlijk nummer dat uniek is voor elke Kucoin-gebruiker en is te vinden aan het einde van elke verwijzingslink. Deze identiteit maakt allerlei soorten tracking op het platform mogelijk, vooral verzoeken met betrekking tot het verwijzingsprogramma.
  • Create New...