As an investor looking to make informed decisions in the stock market, staying up-to-date on the latest news and trends is crucial. This week, natural gas prices took a hit as traders reacted to a bearish EIA report. The report revealed that inventory build exceeded analyst expectations, leading to a decline in prices.
One factor contributing to the downward trend in natural gas prices is the high levels of production. Despite hot weather in the first half of summer, which typically increases demand for natural gas for cooling purposes, the market has not seen sustained support. Inventory levels continue to grow due to this high production, further putting pressure on prices.
From a technical standpoint, natural gas is testing important support levels between $2.00 – $2.05. If prices break below this range, the next support level to watch is between $1.80 – $1.85. The Relative Strength Index (RSI) remains in a moderate territory, leaving room for potential momentum shifts. However, the overall technical picture for natural gas remains bearish, indicating the need for significant positive catalysts to reverse the current trend.
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