Natural gas prices have slipped lower to start the week as the market remains uncertain about the balance of supply and demand, making it hard to predict future price movements.
From a technical perspective, the bullish momentum seems to be slipping away as price heads back towards the $3 mark, which has been a key level of resistance in the past. By doing so, the RSI has slipped back below 50 which puts further downside pressure on price.
After falling below the 20-day SMA, price is now heading towards the 50-day SMA at 3.0051, which could act as a last barrier of defence for buyers before facing the $3 mark. It is also converging with an ascending trendline support from the lowest seen this month so far. This could strengthen the potential for a price reversal over the coming days. If so, buyers should attempt to break above $3.20 in rapid succession for the bullish breakout to be valid and lead to further appreciation towards $3.40, which seems like a key barrier for buyers this month.
Natural Gas daily chart
Past performance is not a reliable indicator of future results.
With European and US gas demand expected to tick higher and storage drawing quicker than expected the outlook for 2025 remains positive. This could see US gas futures starting the new year above the 2024 high at $3.60 with a bullish bias.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk.