• 3 minutes In a Nutshell...
  • 5 minutes CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 7 minutes Australian renewables zone attracts 27 GW of solar, wind, battery proposals
  • 9 minutes Why Oil could hit $100
  • 5 hours COVID is real now
  • 22 hours Is Biden the poster child for White Privilege ? DNC needs to replace him now before it's too late.
  • 12 hours The Boris Yeltsin of America
  • 8 hours Where is Alberta, Canada headed?
  • 22 hours Why Putin is popular in Russia
  • 49 mins Is The Three Gorges Dam on the Brink of Collapse?
  • 3 hours Joe Biden offers advice to correct the public health
  • 8 hours There Has Been No Trump Manufacturing Boom Even Before Covid
  • 18 hours Fauci: "USA will soon have 100K new cases per day". Trump re(p)-lies: "The problem has been fixed"

Breaking News:

Oil Climbs On Major Crude Draw

FX Empire

FX Empire

More Info

Premium Content

Natural Gas Analysis for the Week of August 22, 2011

Last week October Natural Gas rebounded from a 5-month low to close off the low. Despite the comeback on Friday, the trend remains down with no sign of a change apparent over the near-term.

According to last week’s inventory report, supply continued to increase, keeping a lid on any major advance. At this time it appears that weather is going to be the key factor that could drive this market higher. Both renewed heat in the southern half of the U.S. and tropical storms in the Gulf of Mexico could underpin this market and trigger a short-covering rally.

Technically, the $4.00 level continues to play a psychological role in the market. This price may act as a pivot over the near-term as traders attempt to build a support base. Downtrending Gann angle resistance at $4.13 could be tested if a short-covering rally begins. A break though this level will be bullish and could trigger a further rally into a major 50% level at $4.24.

Factors Affecting Natural Gas This Week:

• Supply and Demand. Production is expected to remain high, thereby increasing the supply. This condition is not likely to change until after Labor Day. As long as the market continues to absorb the added supply without much of a sell-off, a case can be built that a bottom is being formed. Unless there is a surprise in the next S/D report, look for prices to hold steady.

• Weather. Excessive heat in the Southern half of the U.S. could lead to a spike in prices due to increased demand from utility companies. Hurricanes and tropical storms remain a major concern. So far they haven’t been an issue this year, but nonetheless, natural gas traders realize this condition can change quickly. One of the reasons why traders are leery about shorting the market at this time is because of the threat of a storm affecting production.

By. FX Empire

FXEmpire.com is the Forex flagship site of the FX Empire Network. The FX Empire Network provides readers with the most expert and most timely technical analyses, fundamental analyses and news-pieces; this in order to empower them to make for themselves the best possible financial decisions. The FX Empire Network’s other flagship sites include: StocksEmpire.com and CommoditiesEmpire.com.


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News