| Will Natural Gas Prices Hit $2.90 per MMBtu? | |
| | |
|
Natural Gas Prices Gain Almost 12% in the Last 5 Trading Sessions (Part 3 of 3) (Continued from Part 2) Down trend channel
June natural gas futures contracts are trading in a downward channel since mid-February 2015. Prices broke above the trend line resistance on April 30 and continued the momentum on May 1—led by the consensus of warmer weather. Oversupply factors and warm weather estimates are driving the oil prices between the channels. The inventory report due on May 7 will be the key catalyst for gas prices this week.
Key resistance
Natural gas prices gained almost 12% in the last five trading sessions. The bullish momentum could drive natural gas to the nearest resistance of $2.90 per MMBtu (British thermal units in millions). Prices hit this level in February and March 2015. Recently, the weather played a pivotal role in driving the gas prices. In contrast, support could be seen at $2.70 per MMBtu. Gas prices tested this level in April 2015. The massive inventory and oversupply concerns will drive natural gas prices lower.
Prices settled above their 50-day moving average of $2.74 per MMBtu as of May 4, 2015. The downward channel and bullish momentum could push gas prices as high as $2.90 per MMBtu. However, the 14-day RSI (relative strength index) is in overbought territory. Generally, prices decline from these levels. Profit booking could also drive gas prices lower.
ETFs like the VelocityShares 3X Long Natural Gas ETN (UGAZ) and the United States Natural Gas Fund LP (UNG) benefit from higher gas prices. Gas producing companies like Cimarex Energy (XEC), Bill Barrett (BBG), and Apache (APA) also benefit from rising gas prices. These stocks have a gas production mix that’s greater than 40% of their total production. They account for 3.68% of the Spider Oil and Gas ETF (XOP).
Browse this series on Market Realist:
|
|
|
Bill Barrett Corporation
|
|
|
CODE : BBG |
ISIN : US06846N1046 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Bill Barrett corp is a exploration company based in United states of america. Bill Barrett corp is listed in Germany and in United States of America. Its market capitalisation is US$ 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. |