Yahoo Finance Natural Gas Price Fundamental Weekly Forecast – Bullish Over $2.817, Bearish Under $2.675
Natural gas futures finished lower last week as investors shrugged off current conditions while pricing in new forecasts for improving temperatures into the end of the month.
May Natural Gas futures settled at $2.716, down $0.043 or -1.56%.
In other news, the EIA reported on Thursday that natural gas storage in the U.S. fell by 93 billion cubic feet (Bcf) in the week-ended March 9. This was slightly below the estimate of 96 Bcf.
That compared with a draw of 57 Bcf the week-ending March 2 and represented a drop of 718 billion from a year earlier and was also 296 Bcf below the five-year average.
After the release of the report, total U.S. natural gas in storage stood at 1.532 trillion cubic feet (Tcf), 31.9% lower than levels at this time a year ago and also 16.2% below the five-year average for this time of year.
Last week, the futures contract rallied to its highest level since the week-ending February 2, but this move failed to attract enough buyers to sustain the move, leading to a rapid turnaround. The price action suggests that short-sellers and hedgers are still willing to sell rallies even at current low price levels.
The recent rally has been supported by strong demand in the spot market. This demand has started to drop and will continue to fall as the weather improves. This should keep a lid on rallies.
The main range is $2.504 to $2.951. Its retracement zone at $2.728 to $2.675 could become near-term support.
The short-term range is $2.951 to $2.600. Its retracement zone at $2.776 to $2.817 is likely to become resistance.
We could see a rangebound trade this week if the market remains inside $2.675 to $2.817.
Look for a bearish tone to develop on a sustained move under $2.675 and for a bullish tone to develop on an extended move over $2.817.
This article was originally posted on FX Empire
