• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 8 minutes What Can Bring Oil Down to $20?
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 4 hours Alberta govt to construct another WCS processing refinery
  • 5 hours Let's Just Block the Sun, Shall We?
  • 1 hour Venezuela continues to sink in misery
  • 6 hours Instead Of A Withdrawal, An Initiative: Iran Hopes To Agree With Russia And Turkey on Syrian Constitution Forum
  • 1 day U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 3 hours Water. The new oil?
  • 1 day Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 4 hours Regular Gas dropped to $2.21 per gallon today
  • 4 mins USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 2 days OPEC Cuts Deep to Save Cartel
  • 2 days IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 2 days $867 billion farm bill passed
  • 2 days Global Economy-Bad Days Are coming
Alt Text

Equinor Starts Up Major Gas Field In Norwegian Sea

Norway’s oil and gas major…

Alt Text

Qatar To Invest Up To $20 Billion In U.S. LNG

Qatar Petroleum, the state owned…

Alt Text

China Determined To Avoid Another Natural Gas Crisis

Determined to avoid a natural…

FX Empire

FX Empire

More Info

Trending Discussions

Natural Gas Analysis for the Week of September 12, 2011

For the first time in seven weeks, natural gas futures failed to make a lower-low on the weekly charts. The inside week that was produced may be a sign of a shift in sentiment to the upside or at the least impending volatility.

Although the November futures contract closed only slightly better, it appears to have withstood an onslaught of very bearish trading conditions. In addition to this, for the second consecutive week, it identified the key Gann angle which when finally taken out, is likely to lead to a strong breakout rally to the upside.

The first sign of strength will be the penetration of a pair of Gann angles from the 5.106 and 4.697 tops. This week’s resistance drops in at 3.986 and 4.057 respectively. Once these resistance points are cleared, the next upside objective will be the 50 percent to 61.8 percent retracement zone of the 4.697 to 3.903 range at 4.300 and 4.394.

Given the way the market reacted to last week’s bearish overtones in the financial markets, it appears that the seasonal low may be in. This could mean the market is saturated with shorts and may be poised for a solid 2 to 3 week short-covering rally.

Factors Affecting Natural Gas This Week:

• Weather. It’s still hurricane season and traders are now tracking tropical storm Maria. Even though production in the Gulf of Mexico accounts for only about 7% of U.S. output, short traders seem to react each time a storm approaches the Gulf. The trick is not to get caught short too big if a storm hits.

• Supply and Demand. Supply went up again last week, but the increase was only slightly better than estimates. Production is still increasing but maybe the market is ripe for a surprise in demand. Seasonal factors may begin to play a part.

• Technical Factors. Watch for a potential breakout above a pair of Gann angles at 3.986 and 4.057. Stops are likely to get hit above these levels, triggering the start of a strong short-covering rally.

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.




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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