Bullish US Natural Gas runs out of steam at $2.58; currently at $2.5 per MMBtu

Yesterday at a glance: Natural Gas closed yesterday at $2.5 per MMBtu (with a daily low of $2.31) after ending Thursday at $2.31 and gaining 8.21%.

At the same time, United States New Home Sales (Jan) released yesterday at 15:00 UTC with a figure of 670,000, while the previous figure was 625,000. United States Core PCE Price Index (MoM) (Jan) came out at 0.6, while a consensus of analysts was expecting 0.4. United States CFTC S&P 500 speculative net positions came out at -222,300.

Trend and momentum analysis indicates that Natural Gas made an initial breakout above its 21 day Simple Moving Average at $2.41, a potential indicator of a newly emerging bullish phase. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $2.68, thereby suggesting that Natural Gas is becoming overvalued. Technical chart analysis shows NYMEX Gas is 11 cents away from testing key resistance at $2.62. Peaking above this level could inspire market bulls and open the path to further gains.

Notwithstanding NYMEX Natural Gas's appreciation in recent days, the technical outlook suggests its bullish run is now fading.

This rally in NYMEX Natural Gas's price coincides with other Energy as notably, Heating Oil rose 3.27% yesterday and closed at $2.71. Notably, Crude Oil rose 1.41% yesterday and closed at $75.39. Brent Crude Oil improves 1.17% yesterday and closed at $82.21.

Having set a significant low of $2.02 4 days ago, NYMEX Natural Gas is trading 14.55% higher.