FX.co ★ mozell.abshire | Natural Gas (NG)

Hello traders, The natural gas market is showing a moderately positive trend, supported by a decrease in inventories in the United States compared to last year, incomplete filling of European gas storage facilities, and ongoing growth in domestic consumption. Despite current inventories exceeding the five-year average level, market participants are noting a slowdown in their replenishment pace, providing a basis for supporting price dynamics. An additional factor contributing to volatility is the expectation of a reduction in LNG exports from the United States due to decreased profitability for producers. At the same time, the lifting of restrictions on development in Alaska is more of a long-term factor for market balance rather than significantly impacting current dynamics. Gas is clearly in a bullish trend. The breakthrough of the key resistance around 5.00 has been confirmed, and the price continues its upward movement with new local highs. The growth momentum is strengthening, with significantly increased trading volumes. The formation of ascending candles without significant corrections indicates the dominance of buying pressure. The target level for further growth is the 5.500 zone, beyond which a more significant resistance around 5.700 follows. The RSI indicator is in overbought territory, increasing the likelihood of consolidation or minor correction, but there are no signals of a trend reversal yet. The key level of the first line of technical support is 5.250. It now serves as a base to sustain the upward movement. Below lies intermediate support at the 5.00 level, where consolidation was previously observed. A drop below 4.900 would signal a break in the upward trend and a possible deepening of the correction. For now, the market is demonstrating upward dynamics, and bounces towards 5.00 can be seen as a favorable opportunity to resume buying within the trend.