Natural gas futures sparked more than six percent yesterday as per recent natural gas outlook. Prices rebound strongly from the two-week low following a smaller-than-expected build and forecasts for colder than expected weather and higher heating demand over the next two weeks.
New data from the EIA showed that US utilities added 74 billion cubic feet of gas into storage on the week until October 20th, above the five-year average, but missing market expectations of an 80 billion cubic feet build.
Adding to the rebound, meteorologists noted that weather in the lower 48 US states is likely to be significantly colder than expected from the end of October to the start of November, increasing demand for gas-intensive heating.
Capping the rebound, however, data from the LSEG showed that average US production averaged 103.9 billion cubic feet so far in October, on track to surpass the record high of 103.1 billion cubic feet from July.
Natural Gas Outlook | Technical Outlook
Since 23 October 2023, Natural gas prices have turned positive. Prices rebounded from the low 241.80 and recently it made a high 298.80.
As per the outlook given on 20 October 2023, prices rebounded from their crucial support and tested 258-275 both predicted levels.
On the above chart, prices breached its previous massive resistance of 289.00, and traded at 298.80 which pointed for further upside move. A break above 299.80 will lead prices towards next resistance 306-318.25 very soon. On the downside, crucial support is seen at 284.50-265.00.
Traders may go long either above 298.80, else wait for dip towards 284-280.00.
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