The price action suggests an intense fight between the bulls and the bears to take control of natural gas ahead of summer. Traditionally, the summer used to lead to a lesser demand for natural gas, however, the increased usage over the past years have led to higher use of natural gas in power generation and the use of air-conditioning makes a lot of difference. Last year, the change in inventory declined to negative for the first time during summer. Hence, the natural gas bulls who are already energized by weaker production last year are not ready to give up despite approaching summer. However, despite clearing a crucial resistance around $3.3 per MMBtu, the bulls have been struggling to make considerable gains as the Bears are not ready to throw their towel in.
Several attempts to break the impasse have failed so far. Calculations by FxWirePro suggest that Bulls are trying to push the prices to $3.85 in the short term, whereas the bears are pushing for $2.58 per MMBtu.
The material has been provided by InstaForex Company – www.instaforex.com
May 30, 2017 at 07:22PM
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