News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/DSp7f3YuAx
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/HNqHcbL6vk
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:https://t.co/zn56iTFBxM https://t.co/FbepD4RaFg
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/XS0176LyOg
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here: https://t.co/l4UICqJzJy https://t.co/dQ2pS0E4fp
Natural Gas Futures Poised for New Highs Amid Cold Weather

Natural Gas Futures Poised for New Highs Amid Cold Weather

Guest Contributor,

Natural Gas futures for February delivery rose to $4.279 per Million British Thermal Units (MBTU) on Tuesday, the highest level in sixteen months, amid concerns that cold weather may have reduced the US heating oil stockpiles to a record low.

Gas futures surged more than 5.5 per cent during Asian session today, the biggest rise since late 2012, on speculation that a report by Energy Information Administration (EIA) which is due on January 16 may reveal that supplies slumped to 303 billion cubic feet at the end of last week, which would be more than 285 billion, the lowest level recorded on December 13. It is pertinent that temperatures are likely to remain below average level in the eastern United States from January 18 to January 27, according to a report by MDA Weather Services.

At the time of writing gas futures are being traded at $4.25 / MBTU, in an upward slope channel as shown below, immediate support is seen at $4.23, current channel support, ahead of $4.13, hourly 100 MA, and then $4.11, hourly 55 MA.

natural_gas_body_Picture_3.png, Natural Gas Futures Poised for New Highs Amid Cold Weather

Gas may found resistance in short term around $4.342, current channel resistance.

It is also to be noted that significant positive divergence may be noted with MACD in short term as charted below;

natural_gas_body_Picture_2.png, Natural Gas Futures Poised for New Highs Amid Cold Weather

This clearly indicates that natural gas futures may print new highs in near future. Relative Strength Index (RSI) is currently in oversold territory which means some correction is expected before further upward movement.

The correction should however be restricted above $4.236, swing low of previous wave, and then Gas price should resume upward movement with a new high above $4.27 as shown in the following chart;

natural_gas_body_Picture_1.png, Natural Gas Futures Poised for New Highs Amid Cold Weather

Contrary to above mentioned scenario if we see a Lower Low (LL) on hourly chart, it would expose weakness in ongoing bullish momentum thus pointing to a downside risk.

Earlier gas futures suffered heavy losses last week due to hawkish FOMC minutes, poor non-farm payrolls and a rise in temperature at the end of week.

Gas stockpiles were recorded 2.817 trillion cubic ft on January 3, 10% percent down from 5-year average and about 15% percent less than previous year’s weekly supplies, according to a report released by EIA. Investors are seen very cautious and reluctant in keeping the short positions opened before a very crucial storage report due on Thursday.

Temperature fell to the lowest level in 21st century on January 7 in some US states, according to a report by weather department. The report forecasts 18 degrees Fahrenheit temperature in New York on January 19, 9 degrees less than the average. Similarly mercury may come down to 15 degrees Fahrenheit on the same date, which would be 8 degrees less than the normal temperature, the weather report added.

In addition Federal Open Market Committee (FOMC) meeting is also scheduled on January 29 in which policy makers are expected to consider more tapering in monthly bond purchase program after a labor department report showed that the jobless rate in the US has slumped to 6.7%, the lowest since 2008.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES