Natural Gas Futures Solid Long Term Rebound
FOREX.com October 19, 2020 9:45 PM
China's industrial production rose 6.9% in September, the fastest growth since December last year and better than 5.8% expected, which should be positive to Natural Gas prices...
Data released on Monday showed that China's 3Q GDP grew 4.9% on year, below estimate of 5.5%. However, industrial production rose 6.9% in September, the fastest growth since December last year and better than 5.8% expected, suggesting that Chinese economic activity is still on a strong footing. As industrial demand appears to be recovering from the coronavirus pandemic, outlook for natural gas remains positive.
From a technical point of view, NYMEX Natural Gas Futures are extending the rebound as shown on a daily chart. It has now surpassed the 38.2% Fibonacci retracement resistance of the decline started in late 2018, opening a path to the 50.0% and 61.8% retracement levels. The level at $2.26 might be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at $3.18 and $3.59 respectively.
Source: Gain Capital, TradingView
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