NYMEX Natural Gas is grinding lower from $2.94 to $2.88 per MMBtu, shedding 6 cents (2.04%) today.
- United States Pending Home Sales data will be released today at 15:00 UTC, with an expected improvement to -0.9%. Natural Gas reaction to indicator information will follow.
- Today's losses are adding to a 10 day bearish run, during which NYMEX Gas lost 73.1 cents of its value.
Earlier data releases related to Natural Gas – United States Core PCE Price Index (MoM) (Dec) released today at 13:30 UTC with a figure of 0.3, while the previous figure was 0.2. United States New Home Sales (Dec) came out at 616,000, while a consensus of analysts was expecting 617,000.
Here is the technical analysis of NYMEX Natural Gas before macro data is released:
With regards to technical trend indicators, chart analysis show that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Momentum evaluation shows that the Relative Strength Index indicates NYMEX Natural Gas is in an oversold condition, which could precipitate a reversal and set up a new bullish phase. According to asset volatility analysis, US Natural Gas's lower Bollinger Band® is at $2.78, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. Chart analysis suggests Natural Gas could begin to recover as it approaches significant support, now 8 cents away from $2.8. Dipping below could be an indication that further losses are ahead.
With market volatility ebbing, the current technical outlook indicates NYMEX Gas will remain range-bound for the immediate future.
Coming up for US Natural Gas — United States Pending Home Sales is projected to outperform its last figure with -0.9%. It previously stood at -4%; data will be released today at 15:00 UTC.
As the markets get ready for more data to be released — having closed the previous session at $87.47, Brent Crude Oil is up 1% today to currently trade at around $88.35. Having closed the previous session at $81, Crude Oil is up 1.1% today to currently trade at around $81.9.
The commodity has been trending lower for about a month. So far this year, US Natural Gas has declined 28.94% while touching highs around $9.68 earlier this year.