Weekly Outlook on Natural Gas - 03 November 2023

Natural Gas Report

by Sachin Gupta Last Updated: Nov 24, 2023 - 05:24 pm 489 Views
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​On Thursday, the decline in natural gas prices by -0.96% to 288.60 is attributed to record output levels and forecasts of milder weather. Lower heating demand expectations for the next two weeks and an increase in US gas storage by 74 billion cubic feet, though slightly below expectations, contribute to this trend. LSEG reports robust gas production, averaging 104.1 billion cubic feet per day in October. Meteorological predictions signal a shift to near-normal conditions from November 3-14, reducing gas demand. Despite a decrease in pipeline exports to Mexico, gas flows to US LNG export facilities increased in October.

Natural Gas- Weekly Report

The daily chart indicates natural gas prices moving above the Channel formation and 21-days SMA level. Despite this, negative divergence in the RSI momentum indicator suggests a lack of buying strength. Volume activities do not support the buying structure, so anticipating a correction in the near term; one might consider short positions around the 297-298 mark. Support levels are projected at 280/270, while resistance is expected at 305/315. Traders are advised to focus on inventory data and evaluate market conditions closely before making investment decisions.


Important Key Levels:


MCX Natural Gas (Rs.)

NYMEX Natural Gas ($)

Support 1



Support 2



Resistance 1



Resistance 2



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About the Author

Mr. Sachin Gupta is a Senior Research Analyst at 5paisa, based in Mumbai. He has over 10 years of experience in Equity, Commodity research and strategies. 


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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