Natural Gas (XNG/USD) tried to recover somewhat on Thursday after it took a nosedive move on Wednesday as investors cashed in the last few profits ahead of Christmas close. The upward squeeze following rising tensions in the Red Sea failed to post new highs, prompting investors to opt for profit-taking. The firm build-up in US stockpiles also added to the downward move.Meanwhile, the US Dollar (USD) is continuing its consolidation. A breakout could be soon at hand, and could come from the last two big datasets from the US this year, due on Thursday and Friday.. traders brace for the third reading of US Gross Domestic Product numbers this Thursday, while on Friday the Personal Consumption Expenditures (PCE) numbers are up. Natural Gas is trading at $2.35 per MMBtu at the time of writing.
Natural Gas Market Movers: Limited upside
Natural Gas Technical Analysis: Expect sideways for nowNatural Gas fell sharply on Wednesday as speculators cashed in on profits when prices soared on the back of Red Sea tensions. Although tensions are still there, positions have been reduced ahead of the Christmas holidays in a global balance sheet cleanup. Although some more upside could be in the cards, do not expect any quick return to $3 with European gas storage facilities still well-equipped and mild temperatures across Europe. On the upside, Natural Gas could still try to return to the purple line near $2.60 as the first hurdle. Next, the 200-day Simple Moving Average (SMA) at $2.74 will act as a resistance, which if breached will allow Gas prices to soar to $3.00 and the 100-day SMA nearby. With the dust settling on the Red Sea tensions and another mild front nearing Europe for Christmas, Gas prices can retreat further towards $2.20, and the low of June. Firmer support should come in near $2.10, April’s low, at the yellow supportive line. (Click on image to enlarge)XNG/USD (Daily Chart)More By This Author:USD/CAD Price Analysis: Moves Below 1.3350 Followed By The Weekly Low EUR/JPY Price Analysis: The Immediate Upside Barrier Is Seen Near 157.70 WTI Retraces Its Recent Losses Amid Higher US Crude Inventories, Trades Near $74.00
