The Natural Gas has traded mostly lower on Wednesday session, as falling a one week high, as investors are worried for the time being for demand. Binary traders could play some put option on the short term.
After touching $2.44 falling somewhat 1.27% on yesterday trading session, the daily basis view chart, show that we are still on bearish trend for the time being, with the first support at $2.3905, the market could push to test the $2.3405 mark and then $2.2908 on the low.
On the upside, the first resistance could be finding at $2.4830, and a break of this area could bring the Natural Gas to test $2.5008 and then 2.5863 on the top, for a retest the line of the down trend channel.
On yesterday trading session, the Natural Gas prices have traded mostly lower as investors are still worried on a poor demand, despite the fact forecasts for a cooler weather in the U.S is awaiting on early next week on the East coast, but Binary traders think that prices could not hold on the upside as those expected a brief periods of cold weather will come as far too late to reduce to the oversupply in the Natural Gas market. Prices have hit on a high of $2.51, and have touched the low at $2.39 on yesterday’s trading session. .
Official supply data released last week showed that U.S. gas inventories remain at their highest level ever for this time of year. This is typically the coldest time in winter, but temperatures in the U.S. have yet to reach levels cold enough to boost demand for the heating fuel, keeping prices depressed at unseasonably low levels.
For the time being, regarding a high level of production continuing across the U.S, investors keep in mind that only a prolonged period of frigid weather could reduce the oversupply and boost Natural Gas prices.
In other hand except the fact that some colder weather could rise prices on Natural Gas, a possibility that some Gas producer like Exxon Mobil Corp could reduce the production is not on the diary for the time being, because one reason is that much of the country’s gas is produced at wells that also pump crude oil and other products that remain profitable.