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In our evaluation, we’ll check out the prolonged buying and selling vary skilled by final week, as rising noise was flowing in concerning the influence of the Freeport blast. The influence of the blast might lead to provide disruption for a prolonged time to Asia and Europe, notably as a steep surge in demand continues.
US pure fuel costs tumbled after a fireplace broke out on the Texas export terminal at Freeport, threatening to depart the availability of the gas stranded in shale basins regardless of surging abroad demand. NG examined a low at $8.024 and a excessive at $9.656 earlier than closing the week at $8.850.
Undoubtedly, the period of the availability outage issues considerably as this might proceed to influence energy manufacturing as scorching climate situations proceed from California to Texas with highs within the mid-90s to 110°F, leading to regionally sturdy demand.
As well as, rising might add another leg to the sharp surge in the course of the upcoming weeks because the nationwide common value for normal unleaded gasoline elevated to $5.004 a gallon on June 11, up from $4.986 sooner or later earlier.
This sudden surge in common unleaded gasoline might encourage pure fuel bulls to start out the primary buying and selling session of the upcoming week with a gap-up opening.
In the weekly chart, we see NG possibly experiencing an overstretched trading range of about $2, raising the price from $8.061 to $10.062. The final weekly closing of the coming week could remain above $9.767 since the moving averages still indicate an uptrend.
Despite a lot of selling pressure, NG’s daily chart on Friday found its closing point well above the 9 DMA, which is currently at $8.440. This could result in a gap-up opening on the first trading session of the upcoming week with bulls turning more aggressive once they find a sustainable move above $9.4.
On the hourly chart, the overall situation looks favorable for natural gas bears as NG closed the week well below the 200 DMA. This may lead to extreme volatility during the first two trading sessions of the upcoming week.
Wednesday could finally define the final direction of the commodity as the overall supply outage situation and duration could finally be clarified.
Disclaimer: The author of this analysis does not have any position in Natural Gas futures. Readers are advised to take any position at their own risk; as Natural Gas is one of the most liquid commodities of the world.
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