US Natural Gas is grinding lower from $3.26 to $3.1 per MMBtu, shedding 16.2 cents (4.97%) today.
Crude Oil Inventories data from United States will be released today at 15:30 UTC with analysts expecting a decline to 971,000. Potentially significant price fluctuations in NYMEX Natural Gas are expected to follow.
Amid the market gloom, United States API Weekly Crude Oil Stock came out at 3.38 million, while a consensus of analysts was expecting 1.6 million. United States 2-Year Note Auction released yesterday at 18:00 UTC with a figure of 4.139, while the previous figure was 4.373. United States Services PMI came out at 46.6, while a consensus of analysts was expecting 45.
Despite being in the red so far in the current trading session, Natural Gas peaked above its 3 day Simple Moving Average around $3.25 — typically an early indicator of a new bullish trend beginning to emerge. The Relative Strength Index has gone below 30, going into oversold conditions and allowing more gains. Bollinger Bands® shows an indication of recovery: the lower band is at $2.96, a low enough level to, generally, suggest that NYMEX Gas is trading below its fair value. NYMEX Natural Gas could begin to recover as it approaches significant support, now 3 cents away from $3.12. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, although technical indicators are mixed and pointing in different directions, it seems Natural Gas is set to appreciate despite today's setback.
Looking ahead, ongoing depreciation may be prolonged as as things stand, upcoming United States Core Durable Goods Orders data is projected to fall short of market expectations with newly published data of -0.2%, following on from the preceding figure of 0.1%. New data is set to be published tomorrow at 13:30 UTC. United States Crude Oil Inventories projected to decline to 971,000 while previous data was 8.41 million; data will be released today at 15:30 UTC. Projections for United States GDP are set for a continuation of decline with 2.6 while previous data was 3.2; data will be released tomorrow at 13:30 UTC.
The commodity has been trending lower for about a month. NYMEX Gas hit a significant low of $3.13 around 3 days ago, but has since recovered 4.06%.