Baxia Markets
August 02, 2021

Could Natural Gas break the previous high?

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XNGUSD has been on an uptrend since the beginning of April, when demand for the commodity started to increase; it has found a few pullbacks along the way but moving up steadily.

The price suffered a fall in two sessions last week where it lost 3.88% then recovered most of that ground just to lose 3.46% again the following session. The commodity is starting to move slightly up in the session, but this might not last very long as the price is getting closer to an overbought status.


Nat Gas July 30th 2021-1

The relative strength index is currently at 63%, recovering after almost entering an overbought status; with the price climbing, the RSI will get closer to that 70% which will likely reflect on a price retracement.

The Bollinger bands are wide, and high volatility can be expected; the price is trading closer to the upper band but not close enough to consider the price relatively high yet. Our parabolic SAR indicator suggests that the price will continue to climb in the short term; however, it might not be enough to break the $4.158 barrier, which records the highest level since December 2018.


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energy, commodities, trading conditions, technical analysis, trading indicator

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