Natural Gas Retests the Top of the Resistance As Nord Stream 1 Pipeline Shuts for Maintenance
Skerdian Meta • 1 min read
Natural gas was showing bullish pressure in summer and early spring last year, indicating that the upward pressure on prices was before the Ukraine conflict. It retreated lower at the end of the year, but resumed the bullish momentum again, pushing higher to around $9.65 until the first week of last month.
Then it made a major bearish reversal and lost more than 40% of its value, falling to $5 lows. The 100 SMA (green) acted as support in the first week of this month and we saw a bounce higher, but the bearish momentum resumed again and the price fell to the 200 SMA (purple) on the daily chart. Gas bounced off that moving average but got rejected by the 100 SMA which acted as resistance at the top. Although today we are seeing a retest of the 2 MAs and the support and resistance zone around $6.50.
Crude Oil Daily Chart – Can Buyers Push Above the MAs?
The resistance at $6.50 is holding for now
IEA said that the global natural gas demand is set for slow growth in the coming years as turmoil strains an already tight market. High gas prices are suppressing the demand, while governments are demanding people to curb consumption.
After the explosion at the Freeport LNG facility in the US and the restart, the decline resumed, but today we heard that the maintenance has started for the Nord Stream 1 Gas Pipeline, which is a positive for gas prices. Although, the story isn’t halting the NS1 gas flow from Russia. This is ANNUAL maintenance – The clue is in ‘annual’. But let’s see if the buyers can push above this level.