Despite growing fears of a shortage of international supplies, traders re-evaluated the previous day’s bold government storage report, ending natural gas futures on Friday.
On Friday, December, natural gas futures fell by $ 5.763, or $ 0.228 or 3.81%.
Technical factors also play a role in selling the chart, which indicates that there are now strong short sellers. Meanwhile, extreme weather conditions are expected to continue to call for quadruple infections.
All of this adds up to short-term expectations, but not a big change in trend.
Short-term weather forecast
According to NatGasWeather, from October 1 to October 7, “a lot of climate change will continue in the United States, with one system in the Northwest, two different fields, and a fourth in New England.
Temperatures with these systems range from 50 to 70 degrees Celsius, in addition to the highlands of Texas and the 80’s.
In addition to the 90’s in the California and Southwest deserts, the rest of the United States will continue to warm up in the 60’s and 80’s.
In general, the national interest rate will be much lower than expected.
Energy Information Management Weekly Storage Report
The U.S. Energy Information Administration (EIA) reported Thursday that natural gas home supplies rose by 88 billion cubic feet (BCF) by the end of September 24. By S&P Global Platts.
Accurate numbers compared to 74 BCC construction and a five-year average of 72 BCF for the same week in 2020.
Total shares are now down 3.170 trillion cubic feet (TCF), 575 BCF a year ago and 213 BCF a five-year average, the government said.
Retailers traded higher on Friday from $ 5,947 to $ 6,060. You are trying to establish a load-bearing secondary upper.
A trader’s response from $ 5,652 to $ 5,469 should set the tone on Monday.
Spending $ 5,469 will reverse the trend. If this step creates a sufficient fall rate, then look for a 50% to 61.8% recovery zone at $ 5.185 to $ 4,892. Because it is a price zone, buyers can be tempted in this area.
If there is no pull to $ 5,652 to $ 5,469, this indicates that there are strong buyers. They try to turn the tide. Spending $ 6,141 could go up.