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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • $WTI Crude Oil is currently strengthening as the #OPEC meeting takes place. Crude Oil is now trading above the 62.00 level for the first time since Monday. $OIL $USO https://t.co/40oC26KYJG
  • there it is, $gbpjpy got the 150 handle https://t.co/32swpZM4Dx https://t.co/rv2d1CdXyR
  • Saudi Energy Minister: - Oil market has improved - Uncertainty around recovery has not receded - Urges caution and vigilance on oil market #OOTT #OPEC $OIL
  • $SPX testing confluent support, trendline + fibo level down here. $ES $SPY https://t.co/6DRaYoWuCV
  • 🇺🇸 Jobless Claims 4-week Average (FEB/27) Actual: 790.75K Previous: 807.5K https://www.dailyfx.com/economic-calendar#2021-03-04
  • 🇺🇸 Initial Jobless Claims (27/FEB) Actual: 745K Expected: 750K Previous: 736K https://www.dailyfx.com/economic-calendar#2021-03-04
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.89%, while traders in Germany 30 are at opposite extremes with 66.38%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/OyiaWxTOe9
  • 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/BBKTkI9fWl
  • German Finance Min. Scholz: Germany will need to take on extra debt in 2021. $EUR
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.19% 🇨🇦CAD: 0.10% 🇳🇿NZD: 0.04% 🇪🇺EUR: -0.24% 🇯🇵JPY: -0.34% 🇨🇭CHF: -0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6Fc3eqZNSZ
Natural Gas Rallies on Colder Temperature Outlook, EIA Report in Focus

Natural Gas Rallies on Colder Temperature Outlook, EIA Report in Focus

Thomas Westwater, Analyst

Natural Gas, Bullish Temperature Outlook, EIA Inventory – Talking Points

  • Natural gas prices move higher on updated temperature outlook
  • EIA inventory levels move towards 5-year average in latest report
  • Prices break above the 50-day SMA, with monthly high in focus
Top Trading Opportunities in 2021
Top Trading Opportunities in 2021
Recommended by Thomas Westwater
Get Your Free Top Trading Opportunities Forecast
Get My Guide

An updated temperature forecast from the National Weather Service’s Climate Prediction Center injected some bullish energy into natural gas this week, sending prices nearly 6% higher. The updated outlook shows an increased probability for colder-than-average temperatures across the western United States over the next 8-14 days.

NOAA 8-14 DAY OUTLOOK TEMPERATURE PROBABILITY

NOAA weather forecast

Source: NOAA

The heating gas was on track to record a third consecutive month of losses prior to this week’s rally. A relatively mild winter – according to the Midwestern Regional Climate Center – across the United States has likely weighed on demand. Still, the winter season, where natural gas typically sees increased demand, has two months remaining, providing potential time for more weather-induced price rallies.

Data from the US Energy Information Administration has shown historically elevated inventory levels this season. However, the latest EIA Weekly Natural Gas Storage Report for the period ending January 15 reflects an improving situation, with levels continuing to trend closer to the 5-year average following a weekly 187 Bcf inventory decrease. The next EIA report will cross the wires on January 28, according to the DailyFX Economic Calendar. A continuation lower in storage levels may likely spur some upside movement on the report’s release.

EIA UNDERGROUND INVENTORY LEVELS

EIA storage

Source: EIA

Natural Gas Technical Outlook:

A break above the 50-day Simple Moving Average this week puts price action on a more stable technical footing. The current move began with a gap up at the start of the week after the 61.8% Fibonacci retracement appeared to underpin last week’s selloff. A small retracement from Wednesday’s high has prices trading just below the 2.7 handle.

A push higher will likely have bulls attempt to break above the 38.2% Fibonacci level, with the January high serving as a subsequent price target at 2.89. The MACD line crossed over its zero line, which may indicate a follow-through in momentum. To the downside, the 50-day SMA may provide some support. A break below could give way to a drop down to the 61.8% Fibonacci level, however.

Natural Gas Daily Price Chart

Natural Gas price chart

Chart created with TradingView

Natural Gas TRADING RESOURCES

--- Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwateron Twitter

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

DISCLOSURES