Natural Gas Closes In Red Again

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Natural Gas Closes In Red Again

Natural Gas (Xng/Usd) Closes In Red Again

The Natural Gas (XNG/USD) is on the path to closing its 6th day in the red, making it one of the worst corrections. Since the 25th of June, natural gas has lost 15% of its value, and more downsides are ahead as the USA is expected to lift the ban on LNG export licenses.

The ban on the licenses for LNG export was imposed by the US government in order to meet the climate changer requirements.

Dxy Bullish Ahead Of Us Elections

While the Natural Gas (XNG/USD) is experiencing heavy losses, the DXY is enjoying good demand amid bullish bond markets. In addition, the upcoming elections are also favorable for the USD, which is yet another red flag for Natural Gas (XNG/USD).

For now, natural gas is trading near $2.46 and has already lost the 200 SMA to the bears. The 200 SMA on the D1 chart was present at nearly $2.53 and served as dynamic support. However, that has now turned into resistance and signals a long-term bearish trend for the commodity.

The immediate next support for the Natural Gas (XNG/USD) is 8% lower than the current prices. So if the sellers continue the momentum, it means more downside for the Natural Gas (XNG/USD).

The next key level to watch is $3.08, which is a bullish target if the Natural Gas (XNG/USD) can turn around and stage a recovery. But if the current momentum continues, the next stop for the Natural Gas (XNG/USD) will be $2.20, $2.10, and then the static level of $2.00.

Before all of these levels are challenged, the immediate target for the bears will be $2.13, and the 100 SMA will act as a strong dynamic support.

Signs of uptick in the US and Chinese manufacturing sector could lend some support to the natural gas prices. Similarly, major changes in the oil market could also lend support to the prices of natural gas (XNG/USD).

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