Natural Gas Tests Resistance

Natural Gas Tests Resistance by Ashly Chole last updated on August 31, 2024

Natural Gas (Xng/Usd) Tests Resistance On Lng Shortage

The prices of natural gas (XNG/USD) inched higher on news that the European region is facing a gas supply breakdown.

For now, one of the major suppliers of natural gas to Europe is Norway, but the EU is also in talks with Russia and Ukraine to keep the supply intact.

It seems that the EU is still trying to figure out the gap left behind by the ban on Russian gas. That's why when it comes to the question of when the EU will be free from Russian gas independence, there's still a lot of uncertainty.

Dxy Trades Near 105.00

Meanwhile, the DXY is hovering above the 105.00 level and has started the week on a calm & positive note. Now, the traders will be looking forward to the CPI along with the decison of the Fed on the interest rate policy.

As of now, Natural gas trades near $3.08 / MMBtu with a bullish bias on the rumors that there will be a shortage of natural gas.

On the daily chart of Natural Gas, there are 15 consecutive green candles, which highlight the bullish nature of this commodity. Given the momentum, experts believe more upside is on the cards, but let's not forget that there are many heavy resistance levels ahead.

However, if natural gas breaks above $3.10, the next stop will be $3.50, which will mean an upside of $0.42 from the current levels.

The pivot level for Natural Gas is between $3.07 - $3.10, and a daily close above this range is needed to confirm a bigger upside.

If we look at the downside, the first support is around $2.53 - $2.50, where the 200 SMA is present. If Natural Gas fails to find support at this spot, the next target will be $2.14, followed by $2.00.

But for now, the Natural Gas is trading with a mostly bullish bias as the EU is expected to buy more gas to cover the shortage.