| Current Momentum Could Push Natural Gas Prices to $2.90 per MMBtu | |
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Natural Gas Prices Gained 2.45% Last Week (Part 3 of 3) (Continued from Part 2) Double bottom pattern
NYMEX-traded natural gas futures for June delivery show a double bottom pattern. Prices broke above the neckline on April 30, led by lower-than-expected inventory data. The improving demand consensus due to the warmer weather and supply estimates are swinging the gas prices in the near term.
Support and resistance
Natural gas prices increased for the fourth time in a row over the last five trading sessions. The current momentum could push gas to the key resistance of $2.90 per MMBtu (British thermal units in millions). Gas prices tested this mark in February and March 2015. The price rise is driven by the short-term demand hike led by warmer weather. Bearish traders could see support at $2.50 per MMBtu. Prices hit this mark in April 2015. The long-term oversupply concerns will drive natural gas prices lower.
Gas prices are trading above their 20-day moving average of $2.62 per MMBtu, but below their 100-day moving average of $2.89 per MMBtu. The double bottom pattern indicates that prices could hit $2.90 per MMBtu. However, the RSI (relative strength index) is in overbought territory. Prices fall from these levels.
Rising gas prices are positive for gas ETFs like the VelocityShares 3X Long Natural Gas ETN (UGAZ) and the United States Natural Gas Fund LP (UNG). They’re also positive for gas producers’ profitability like Cimarex Energy (XEC), Bill Barrett (BBG), and Apache (APA). These companies have a gas production mix that’s more than 40% of their total production. They account for 3.68% of the Spider Oil and Gas ETF (XOP).
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Bill Barrett Corporation
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CODE : BBG |
ISIN : US06846N1046 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Bill Barrett corp is a exploration company based in United states of america. Bill Barrett corp is listed in Germany and in United States of America. Its market capitalisation is US$ 534.1 millions as of today (€ 432.6 millions). Its stock quote reached its highest recent level on June 05, 2015 at US$ 9.67, and its lowest recent point on March 19, 2018 at US$ 4.84. Bill Barrett corp has 110 349 217 shares outstanding. |