Fundamental and technical Brief on Natgas
Fundamental
We have experienced the second hottest winter in the last 40 years, that drived domestical consumption to historical lows.
Yet Russia’s war against Ukraine impacts energy markets and supply security globally and this has intensified competition in securing resources European and japan are willing to securise their autonomy by increasing importation of US LNG.
https://www.meti.go.jp/information/...utm_medium=Email&utm_campaign=IEA+newsletters
A lot of LNG hub recently constructed will be operationnal next year boosting demand for LNG.
G7 leaders noted that, since the onset of Russia’s invasion in February 2022, the Kremlin has cut off the bulk of gas delivered to Europe via pipeline. This dramatically bolstered European calls for U.S. exports of LNG. By extension, the shift set the stage for increased global competition for liquefied natural gas, given Asia’s increasing use of the super-chilled fuel to displace coal. Indeed, China has accelarated its coal-to-gas transition.
Technical
3 month Chart
What we can notice here is that we are on a strong bottom zone that has rejected price the last 20 years!!!
Weekly
I consider that this AB equal CD pattern has been completed and a legitimate retracement can occur.
If the DRPO is validated at the end of this week, it will be a strong sign of possible shift in the bearish trend we have.
