Natural gas recovered sharply in this month from the low of $2.5190 and jumped till $2.926.
The commodity has made a fresh one-month high due to less than expected rise in natural gas inventories and hot summer.
The recent weather report suggests that temperatures in the Lower 48 averaged 80 degrees for the week ending July 28, 2016—the highest so far in 2016.
The last week report from EIA shows that natural gas inventory increased by 11 Bcf compared with expectations of 22 Bcf .
The prices have strengthened this week on the concern of Tropical Depression 8 is near the Outer Banks and tropical depression 9 is entering the Gulf of Mexico.
Both are expected to become storms by Tuesday.
Technically natural gas is facing strong resistance at $3 and any break above confirms major trend reversal, a jump till $3.32/$3.65/$4.
On the lower side, major support is around $2.760 (9 –day MA) and break below targets $2.64 (55 day EMA).
It is good to buy above $3 with SL around $2.64 for the TP of $3.32/$3.65
The commodity has made a fresh one-month high due to less than expected rise in natural gas inventories and hot summer.
The recent weather report suggests that temperatures in the Lower 48 averaged 80 degrees for the week ending July 28, 2016—the highest so far in 2016.
The last week report from EIA shows that natural gas inventory increased by 11 Bcf compared with expectations of 22 Bcf .
The prices have strengthened this week on the concern of Tropical Depression 8 is near the Outer Banks and tropical depression 9 is entering the Gulf of Mexico.
Both are expected to become storms by Tuesday.
Technically natural gas is facing strong resistance at $3 and any break above confirms major trend reversal, a jump till $3.32/$3.65/$4.
On the lower side, major support is around $2.760 (9 –day MA) and break below targets $2.64 (55 day EMA).
It is good to buy above $3 with SL around $2.64 for the TP of $3.32/$3.65