Market Overview



NGN3- Breaks a Key level-Natural Gas broke major support levels yesterday trading below 3.93-3.95 and to a three month low following inventory data. Supplies rose 111 billion cubic feet beating market expectation and above last week's data of 72 billion cubic feet. Natural Gas retested late April's highs before failing and trading an outside bearish day on May 28 and since, momentum has been to the downside. Traders have looked to the major shelf above 3.95 as support but the reports yesterday was the straw that broke the camel’s back. A major retracement came in at 3.917 and below there at 3.878 as yesterday's low came in at 3.824 confirming the bear leg down. The next major support level will come in at 3.80 and then the next retracement level at 3.78 as longs run to the hills. Warmer temperatures in the summer months tend to boost prices but although weather patterns have shown warmer than typical temperatures recently in parts of the US, more moderate temperatures are expected and have contribute to pressing the market lower. Look for resistance to come at the 3.93 level and only a close back above 3.95 can signal a slight reversal in price action.


Resistance - 3.878**, 3.917**, 3.93*, 3.95**, 4.01**

Support - 3.80*, 3.78***, 3.73***, 3.707**3.50***3.30*****

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Posted-In: Commodities Markets


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