Today’s prices continued to climb by 1.60%, supported by expectations of sustained demand and rising global LNG prices.
Key Points
- Natural gas prices rose 0.71% on Thursday due to increased U.S. demand.
- No major economic data is expected, so prices are likely driven by weather and supply.
- Technical analysis shows a short-term bullish trend with 200 EMA support.
Natural Gas Daily Price Analysis – 09/08/2024
Natural gas saw a modest uptick yesterday, closing at $2.127 after opening at $2.100, representing a +0.71% gain. This increase was influenced by a combination of slightly higher U.S. demand, spurred by continued above-normal temperatures driving up power generation needs, and a 5.6% weekly rise in consumption. Interestingly, despite a broader trend of falling spot prices across most U.S. locations, the Henry Hub spot price managed a $0.06 gain due to these factors.
As of today, natural gas prices have continued their upward trajectory, opening at $2.151 and currently trading at $2.161, marking a +1.60% increase so far. This rise is partially driven by ongoing expectations of elevated demand for cooling due to persistent high temperatures across key regions in the U.S. Additionally, despite a slight decrease in U.S. supply, the global context where liquefied natural gas (LNG) prices have been rising in East Asia and Europe, further supports the bullish sentiment.
Key Economic Data and News to Be Released Today
While no major economic data releases are scheduled for today, the ongoing demand due to weather conditions and supply dynamics will likely remain the primary drivers of price action. Traders should monitor any updates on U.S. storage levels and weather forecasts, as these could provide additional direction for the remainder of the trading day.
Natural Gas Technical Analysis – 09/08/2024
The Natural Gas futures chart indicates a bullish trend in the short term. The 200-period EMA is trending upwards, currently acting as dynamic support around the $2.105 level, reinforcing the bullish momentum. The RSI is at 52.39, slightly above the midpoint, suggesting that the market is neither overbought nor oversold, providing room for further upward movement.
Given the upward trend, as indicated by the 200 EMA and RSI, the market is likely to continue its bullish momentum, potentially breaking through the $2.169 resistance level. However, traders should monitor for any signs of rejection at resistance levels, which could lead to a short-term pullback to the pivot or S1 levels.
Natural Gas Fibonacci Key Price Levels 09/08/2024
Short-term traders planning to invest in NG today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 2.054 | 2.169 |
| 2.018 | 2.205 |
| 1.960 | 2.262 |
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
