Natural Gas is a very common and volatile energy that many investors are used to investing. Therefore it is necessary to know the update and basics of Natural Gas. Today, we are writing the historical fundamental view and technical view of natural gas so that investors may know something new before investing.
XNGUSD Fundamental View
Natural-gas price dropped on Friday, with ample U.S. supplies and forecasts for milder weather conditions sending prices to their lowest levels since May 2016.
Gas prices come down to a lack of winter. Withdrawals from storage have trended below average and we are now at the midpoint of the winter season in terms of heating degree days.
Production has continued to rise, though, at a slower pace than last year, there is no risk of running low on supply.
Unless we begin to see significantly colder temperatures show up in the extended forecasts into the back half of winter, the market is poised to continue lower in the months ahead amid healthy supplies. it is supposed to temperature will decrease with 10 days according to the weather forecast. so it has a good chance to go for long time investment.
XNGUSD Technical View
Technically Nat Gas is at the demand and oversold level. so the price may fluctuate to up anytime. If the US and Europe’s temperature reduces some natural gas will go up surely. from the present level support is identifying at 1.8600. if price break below 1.8600 it may test 1.6850. but it is really tough to break below 1.6850 area.
on the other hand, From the present level resistance is identifying at 2.3000. if price break above 2.3000 prices may test 2.7100 and finally mid-term target is 3.4500
Buy Limit @1.9100