Supply surplus pressure XNG price despite demand increase
Fundamental:
Natural gas (XNGUSD) continued its decline, driven by high storage levels and surplus supply. Despite a 6.8% increase in demand for the week ending 30 Jul, the daily average supply surplus remained at 3.6 bln cubic feet, boosting underground working storage capacity to near the five-year average high. The persistent supply surplus could exert further downward pressure on natural gas prices.
Technical:
The price remains within the descending channel. Unless broken decisively, trend favors lower prices.
If the RSI hits oversold and the price breaks $2.91, the next target could be testing the long-term support at $1.85.
Reversal would require a break and close above the descending channel and above clustered EMAs, ideally crossing $3.07 (EMA50) and $3.16 (EMA100).
MACD bullish cross with RSI rising above 50 would confirm a potential upward momentum.
Price may oscillate between current support ($2.91) and resistance ($3.16-$3.30) if volume and volatility remain low, consolidating before the next major move.
Natural gas (XNGUSD) continued its decline, driven by high storage levels and surplus supply. Despite a 6.8% increase in demand for the week ending 30 Jul, the daily average supply surplus remained at 3.6 bln cubic feet, boosting underground working storage capacity to near the five-year average high. The persistent supply surplus could exert further downward pressure on natural gas prices.
Technical:
The price remains within the descending channel. Unless broken decisively, trend favors lower prices.
If the RSI hits oversold and the price breaks $2.91, the next target could be testing the long-term support at $1.85.
Reversal would require a break and close above the descending channel and above clustered EMAs, ideally crossing $3.07 (EMA50) and $3.16 (EMA100).
MACD bullish cross with RSI rising above 50 would confirm a potential upward momentum.
Price may oscillate between current support ($2.91) and resistance ($3.16-$3.30) if volume and volatility remain low, consolidating before the next major move.
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By Van Ha Trinh - Financial Market Strategist at Exness
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.