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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • $USDCHF has continued to strength today, now above the 0.9280 level, trading around the highs hit in late September. The pair has performed strongly since mid February as US rates have continued higher, rising from 0.8900 by nearly 400 pips to its current levels. $USD $CHF https://t.co/qrHY8Sy2sf
  • Against the backdrop of rising bond yields, both the Bank of England and European Central Bank will meet over the next two weeks. Get your market update from @CVecchioFX here:https://t.co/bcdEfLJjJ7 https://t.co/vXmdohw4VK
  • Oil - US Crude IG Client Sentiment: Our data shows traders are now at their least net-long Oil - US Crude since Jan 06 when Oil - US Crude traded near 5,008.80. A contrarian view of crowd sentiment points to Oil - US Crude strength. https://www.dailyfx.com/sentiment https://t.co/5dv539nKye
  • US Indices are struggling again today. The Nasdaq is now down 10% from the record highs of mid February, entering correction territory. The $VIX has risen to its highest level since last week's bond market event. DOW -1.31% NDX -2.37% SPX -1.48% RUT -2.68% $DIA $QQQ $SPY $IWM https://t.co/VKbWrCcymL
  • #Bitcoin battle-lines drawn. . . Updated 240min $BTCUSD https://t.co/epcJWYYoQh https://t.co/duPBPAM0Ps
  • Overall, Powell sticks with the current Fed stance and hence the move with the USD and UST yields higher, while gold tests 1700 https://t.co/78ds2uS2i9
  • #Gold is hitting fresh nine-month low in the aftermath of Fed Chair Powell's speech, falling to currently trade right around $1,700 for the first time since June of 2020. $XAU $GLD https://t.co/6OJ5Fn4Kn8
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.38%, while traders in Germany 30 are at opposite extremes with 70.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Lgws7z82Gc
  • $Silver testing confluent support, trendline + 23.6 fibo $SLV $XAG https://t.co/UTHhXzPS1v
  • $EURUSD tripping back down to the 1.2000 level on these Powell comments https://t.co/SAAMVbJtpe https://t.co/NXBumuo4qA
Natural Gas Outlook: EIA Storage to Shed Light on Chinese Imports of LNG

Natural Gas Outlook: EIA Storage to Shed Light on Chinese Imports of LNG

Warren Venketas, Markets Writer

NATURAL GAS (HENRY HUB) ANALYSIS

  • Weather and storage data key drivers
  • Chinese demand influential
Advertisement

LNG FUNDAMENTAL BACKDROP

LNG spot prices soared this week (+/- 10%) after colder than expected weather forecasts were announced. Many parts of the U.S. are experiencing their coldest weather this winter which may sustain the rising spot price.

Tomorrow, the EIA weekly storage report will be released which could stir additional volatility leading up to and post announcement. The chart below shows the cyclical nature of storage throughout the year. Winter reflects a depletion in stocks as demand rises which naturally results in a higher LNG spot price. This year spot prices have remained relatively subdued however, there is an improvement over last years prices with similar storage figures.

EIA NATURAL GAS CHANGE (Bcf) vs HENRY HUB NATURAL GAS FUTURES PRICE

natural gas storage

Chart prepared by Warren Venketas,Refinitiv

The Chinese have been on an importing binge of major commodities in 2021 which includes Liquefied Natural Gas. This could potentially reflect in storage data tomorrow.

The rise in LNG importing seemingly commenced back in August 2020 and has progressively increased as reflected in the chart below (green). Not all regions have followed this trend as the Middle East and North Africa (pink) have reduced their LNG imports from the U.S. albeit on a much smaller scale.

U.S. EXPORTS OF LNG DELIVERED BY REGION

U.S natural gas exports

Chart prepared by Warren Venketas,Refinitiv

Enhance your knowledge on Natural Gas with my Top Trading Strategies and Tips!

NATURAL GAS TECHNICAL ANALYSIS

Natural Gas weekly chart:

natural gas weekly chart

Chart prepared by Warren Venketas, IG

Natural Gas daily chart:

Natural gas daily chart

Chart prepared by Warren Venketas, IG

The week started strong for LNG bulls as prices pushed above the November 2019 high (2.9225) but soon retraced below. This resulted in yesterdays long wick candle formation which is suggestive of price rejection at the 2.9225 level. The Relative Strength Index (RSI) indicates current bullish momentum as the indicator sits above the 50 level. This short-term sideways move may not be enough to confirm a reversal in trend as the medium-term trend remains to the downside.

The weekly chart may be forming a rising wedge pattern which could imply a continuation of the medium-term downtrend should prices break below wedge support (yellow).

Bulls will continue to target the 2.9225 resistance with a subsequent push toward the 3.0000 psychological level.

The bearish perspective gives room toward the lower rising wedge support trendline however, there may be further short-term upside to come. 2.7805 may serve as initial support while the January swing low (2.5565) will follow should initial support be broken – the 2.5565 support level will likely coincide with the rising wedge support trendline.

Starts in:
Live now:
Mar 08
( 03:03 GMT )
Keep up to date with price action setups!
Cross-Market Weekly Outlook
Register for webinar
Join now
Webinar has ended

Key technical points to consider:

  • Rising wedge
  • Resistance at 2.9225
  • Support at 2.7805

--- Written by Warren Venketas for DailyFX.com

Contact and follow Warren on Twitter: @WVenketas

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

DISCLOSURES