FxNews—US natural gas prices fell below $2.75 per MMBtu, dropping from recent highs of over $3. This drop happened because of strong domestic supply and reduced risks from the Middle East.
Israel’s recent actions against Iran’s oil facilities initially caused concern, but the situation remained calm with no further major conflict.
US Gas Production Nears Record Highs as Prices Drop
Meanwhile, US gas production hit nearly 103 billion cubic feet per day in late October, close to record levels. Data also showed an increase in gas storage, with a 78 billion cubic feet build in late October. Additionally, forecasts for milder cold weather in much of the US reduced the need for heating, putting more downward pressure on prices.
NATGAS Technical Analysis – 31-October-2024
NATGAS traded bearishly and tested the September 24 low at $2.18 as resistance in today’s trading session. The Awesome Oscillator histogram is red and below the signal line, indicating the bear market prevails. Meanwhile, RSI 14 records show 32 in the description, meaning Natural gas is not oversold; hence, the downtrend could resume.
Overall, the technical indicators suggest the primary trend is bearish and will likely resume.
NATGAS Eyes $2.1 Target if Bears Break $2.18 Support
From a technical perspective, the bearish trend resumes if sellers close the NATGAS price below the immediate support of $2.18. In this scenario, the next bearish target could be $2.1, backed by the lower line of the bearish flag.
Conversely, the bearish outlook should be invalidated if NATGAS bulls pull the price above the immediate resistance at $2.24.
