Is the NGas lying on the ground? So the price established a new period minimum. It is going to test the support area around $ 2.42. This area was not tested from June 2016.
Technically, the main trend is strongly bearish. From the maximum recorded in the last November, the value of natural gas has collapsed by over 50%. It closing the week slightly above the last static support that precedes the key one identified by 78.6% of the Fibonacci retracement set at 2.34. If it were violated to the downside, would lead the price directly on $ 1.63.
The fundamental scenario that is taking shape would seem to support the technical one. In fact the injection of this raw material on the market, recently, has been superior to both the effective demand. The analysts are beginning to hypothesize a future price around the $ 2.00 before winter 2019.
The stocks, as could be seen with the data published on Thursday, have significantly increased compared to expectations and it would seem that the weather, at least for this first part of June, will not help to increase the demand. In any case, this short/medium-term bearish scenario should diminish at least until mid-June, after having discounted it during the last sessions of last week, going to lose about 20 cents of the value per unit, and then resume later.
Except for future macroeconomic changes, at the moment the price would seem to be aimed at a technical rebound and then going down again with a final target of around $ 2.10/2.20. The maximum extension could be towards 2.00 $.
So the question was " Is the NGas lying on the ground?" The answer could be " not yet but soon ".
Technically, the main trend is strongly bearish. From the maximum recorded in the last November, the value of natural gas has collapsed by over 50%. It closing the week slightly above the last static support that precedes the key one identified by 78.6% of the Fibonacci retracement set at 2.34. If it were violated to the downside, would lead the price directly on $ 1.63.
The fundamental scenario that is taking shape would seem to support the technical one. In fact the injection of this raw material on the market, recently, has been superior to both the effective demand. The analysts are beginning to hypothesize a future price around the $ 2.00 before winter 2019.
The stocks, as could be seen with the data published on Thursday, have significantly increased compared to expectations and it would seem that the weather, at least for this first part of June, will not help to increase the demand. In any case, this short/medium-term bearish scenario should diminish at least until mid-June, after having discounted it during the last sessions of last week, going to lose about 20 cents of the value per unit, and then resume later.
Except for future macroeconomic changes, at the moment the price would seem to be aimed at a technical rebound and then going down again with a final target of around $ 2.10/2.20. The maximum extension could be towards 2.00 $.
So the question was " Is the NGas lying on the ground?" The answer could be " not yet but soon ".