Natural Gas trades in a tight range around $2.50.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• Natural Gas trades in a tight range around $2.50.
• Traders see short-term reasons for sending Gas futures higher.
• The US Dollar Index remains steady in the mid-103.00 area after a failed close overnight.

Natural Gas (XNG/USD) is off the lows after its steep decline throughout this week. Although supply is still very much solid and flowing, there are a few elements that are starting to worry traders. The biggest factor is the escalation of tensions in Yemen, with more strikes in the Red Sea, and Iran attacking Pakistan.

Meanwhile, the US Dollar (USD) is playing with fire after the Greenback has been on a tear all week. In the late hours of the US closing bell on Wednesday, the US Dollar Index (DXY) retreated and failed to hold ground above two important technical supports. This means that the lifecycle of this recent US Dollar strength could be short-lived.

Natural Gas is trading at $2.51 per MMBtu at the time of writing.

Natural Gas is trying to salvage a touch from its steep decline earlier this week. Seeing the above bullet points, the current level near $2.50 might be a bit too cheap. A risk premium to be added makes sense and could still come overtime, with a fair value seen near $2.70.

On the upside, Natural Gas is facing all the important Simple Moving Averages (SMA) as resistance levels. First up, nearby is the 200-day SMA near $2.75. Next up is the 55-day SMA at $2.85. Last but not least, the 100-day SMA is at $2.95, near $3.

The ascending trend line broke earlier this week and already triggered firm rejection on Wednesday at the top side. Support near $2.47 is held for now. In case Gas prices fall further, expect to see a full swing decline towards $2.20 and test the low of December.

XNG/USD (Daily Chart)

[/s2If]

The NEHCAP currently runs the following trading systems for clients. They can be bought and run on your funds.

The system is trading live: LIVE ACCOUNT TRACKING
Contact Us: Contact
The HFT_FIX can be run free for 2 weeks on any broker with a ECN. Apply for a free trial
Join Our Telegram Group