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.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Breaking news

Federal Reserve Announce $2.3 Trillion in Loans to Support Economy

Real Time News
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 4.22% Silver: 2.57% Gold: 2.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/aLOug7Zqhq
  • Fed Chair Powell: - Ability to lend and create money is only limited by the law - BBG
  • Fed Chair Powell: - Expecting Q2 to be very weak - Recovery should be quick when people start returning to work $DXY
  • New York Fed Purchases $6 B in Treasury Coupons
  • Heads Up:🇺🇸 USD U. of Mich. Sentiment (APR P) due at 14:00 GMT (15min), Actual: N/A Expected: 75.0 Previous: 89.1 https://www.dailyfx.com/economic-calendar#2020-04-09
  • Merkel: - Measures to slow virus will not likely need tightening
  • Merkel: - Spread of virus shows signs of slowing in Germany
  • Alongside reports that UK Prime Minister Boris Johnson’s health is improving after he contracted Covid-19 and was moved to an intensive care unit, that should give $GBPUSD a near-term boost. Get your GBP/USD market update from @MartinSEssex here: https://t.co/hhgLDWnX60 https://t.co/aLlYpmWhdk
  • Mnuchin: - Pres. Trump will address more hospital aid in next bill - New Fed facilities will create up to $2.3 T of liquidity - Fed facilities will be flexible
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.76% France 40: 1.65% Wall Street: 1.52% US 500: 1.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/tM96Oq3y4W
Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis

Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis

2020-02-20 15:00:00
Mahmoud Alkudsi, Analyst
Share:

Natural Gas Technical Outlook

  • End of Bearish momentum
  • Signals and thresholds to monitor

Natural Gas – Bears Pull Back

Last week, natural gas declined to $1.770 – its lowest level in nearly four years. However, the market rallied after, as some bears seemed to cover. This week, the price printed its highest level in over four weeks at $1.977.

Alongside that, the Relative Strength Index (RSI) rose from 31 to 54 highlighting the end of downside move.

Nat-Gas DAILY Price CHART (JUL 23, 2018 – FEB 20, 2020) Zoomed Out

Natural gas daily price chart 20-02-20 zoomed out
Traits of Successful Traders
Traits of Successful Traders
Recommended by Mahmoud Alkudsi
Traits of Successful Traders
Get My Guide

Nat-Gas DAILY Price CHART (DEc 5 – FEB 20, 2020) Zoomed IN

Natural gas daily price chart 20-02-20 zoomed in

Looking at the daily chart, we notice on Feb 16, natural gas opened with a gap to the upside then closed above the 50-day average providing two bullish signals. Additionally, the market broke above the downtrend line originated form the Nov 24 high at $2.739 eyeing a test of $2.050, see the chart (zoomed out).

This week, some bears showed more hesitation and allowed the price to move to a higher trading zone $1.915 - $2.050. Thus, a close above the high end of the zone could lead more bears to exit the market and cause a rally towards $2.140. Further close above this level, opens the door for bulls to take charge and rally natural gas towards $2.209. That said, the weekly resistance levels underscored on the chart (zoomed in) should be considered.

In turn, any close below the low end of the zone may encourage bear to press towards $1.819. Further close below this level could mean more bearishness towards $1.745. In that scenario, the daily and weekly support levels printed on the chart would be worth monitoring .

Building Confidence in Trading
Building Confidence in Trading
Recommended by Mahmoud Alkudsi
Building Confidence in Trading
Get My Guide

Natural Gas price Four-Hour PRICE CHART (DEC 29 – FEB 20, 2020)

natural gas four hour price chart 20-02-20

From the four- hour chart, we noticed that on Jan 19 natural gas rebounded $1.815 then consolidated after, creating lower highs with higher lows. Last week, the price rallied above $1.900 handle. This week, the market failed twice at overtaking $1.977, signaling a possible return to the sideways move.

Thus, a break below $1.890 could send natural gas to $1.819. Although, the daily support level underlined on the chart should be kept in focus. On the flip side, any break above $2.093 may push the price towards $2.141. Yet, the weekly resistance level marked on the chart should be watched closely.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES

News & Analysis at your fingertips.