Buys Favored On Natural Gas – Increasing Temperature And Falling Inventories Supportive
Natural gas prices are affected by temperature and inventory levels. In the week ended July 1, 2016, temperatures were higher than the forecasts for the week. This has lifted natural gas prices as higher temperatures increase the use of natural gas for cooling purposes.
According to the report from U.S. Energy Information Administration on Thursday (30/6), there was a 42 billion cubic feet addition to natural gas inventory levels for the week ended June 24. Analysts from S&P Global Platts had expected an increase of 46 billion cubic feet for the same week. Lower than expected increases in inventory are another bullish driver for prices at the moment.
On the daily chart, the commodity price experienced a sharp rally after the EIA report to the resistance at 2.998. In recent sessions, the price is moving in a narrow range between 2.882 and 2.938. The parabolic SAR is below the price, and supportive of the uptrend. The price is anticipated to move up continuously.
Buy stop at 2.931, Take profit at 2.964, Stop loss at 2.894