Natural Gas: Warm temperatures fuel the bull camp – Charles Schwab
|Looking at the daily chart for the Henry Hub Natural Gas August 2020, NGQ20 contract, Chris Waterbury from Charles Schwab can see a solid rebound of the lows from late June as Natural Gas prices rallied to start the week thanks to forecast calling for warmer than expected temperatures.
Key quotes
“The contract has seen significant buying pressure and has been able to break through the 20-Day and 50-Day Simple Moving Averages. This could be partially due to short covering but production cuts and weather patterns have helped boost the contracts price.”
“According to the CFTC Commitment of Traders report release on June 30th, managed money traders have increased their long position by +6,561 contracts and decreased their short position by -18,154 contracts. Managed money traders are still net short 6,379 contracts.”
“Trading Central’s Daily Technical Analysis found on Street Smart Central has support levels found at 1.7900 and 1.7200 with resistance levels found at 1.9900 and 2.0300.”
“The 14-Day Relative Strength Index at 64.52% shows the contract is moving into the overbought territory, which is to be expected with the buying pressure that we have seen over the last two weeks.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.