Natural gas prices continue their freefall, dropping another 4% yesterday! 🥶 Milder weather forecasts and uncertainty surrounding Deepseek's impact on data center electricity demand are fueling the decline, despite a record storage drawdown.
Here's the lowdown:
Storage levels plummeting: Last week saw a massive 321 billion cubic feet drop in underground storage, pushing inventories to levels well below the five-year average.
RSI flashing oversold: The Relative Strength Index (RSI) is now at 38, signaling that natural gas might be oversold.
Support level in sight: The commodity is approaching a key support level, but is it time to buy?
Why we're keeping a close eye on natural gas:
We believe the stage is set for a potential price reversal. Dwindling storage levels could drive prices higher as we head deeper into winter. ❄️
This isn't a "buy now" signal just yet. Patience is key with this volatile commodity. We're adding natural gas back to our watchlist and will be watching closely for the optimal entry point. We know that Natural Gas can be extremely volatile … therefore patience is key.
Stay tuned for updates!
Invest with confidence