Natural gas spiked after the hot US Temp forecast.

Natural gas prices inched higher near a one week high and settled with two percent gains. The recent spike was noted amid forecasts for hot U.S. temperatures next week that will boost gas demand from electricity providers to run air conditioning pushed prices higher.
The Commodity Weather Group said above-average temperatures will be seen in the central U. S. next week. However, prices retreated from the day’s high after weekly EIA Natural gas inventories rose +57 bcf, above expectations of +50 bc.
Natural gas prices also have found support from labor unrest in Australia. LNG workers at key Chevron sites in Australia began partial strikes last week after talks with management failed to reach an agreement. Workers said they will stop work completely for two weeks starting this Thursday if no deal is reached. Inspired Plc predicts Asian LNG buyers “would likely bid up LNG imports” to replace Australian volumes if Australian strikes reduce Australian LNG production. Australia is the world’s third-largest liquified natural gas (LNG) exporter, accounting for about 10% of global supplies last year.
Thursday’s weekly EIA report of +57 bcf for the week ended September 8 was bearish for Natural gas prices since it was above expectations of +50 bcf, although below the 5-year average for this time of year at +76 bcf. As of September 8, natural gas inventories were up +15.7% y/y and were +6.8% above their 5-year seasonal average, signaling ample natural gas supplies.

Technical Outlook

Natural gas settled at 225.60 compared to the previous day close of 221.30. Today, prices traded at 226.70 up 0.49%.

On the above chart, prices found support around 219.50, coinciding with 38.2% Fibonacci Retracement. And trading above 50% Fibonacci Retracement, now prices assumed to test next resistance 231-238.00, coincide with 61.8% Retracement and above.

On the downside, crucial support is seen at 212.00 and below only the trend will change, and it could drop towards 205.00-200.00.

Traders may go long around 220-221.00 for projected levels 231-238.00.