Northeast U.S. natural gas continues to be affected by weather

On Tuesday (December 17), natural gas prices fell by about 2.5% in the US market.Decoding PlatformAnalysis, generally speaking, natural gas futures prices have some upside opportunities this time of year. After all, the Northeast United States needs a lot of natural gas to heat homes in the winter, and we are in that situation. Early winter is colder than usual, so it will be interesting to see how this plays out over the long term.

That being said, it's worth noting that natural gas prices are generally volatile, U.S. demand will be temporary, and then gas will sell off again as it does every year. In the short term, I see $3 as an important support level, with the 50-day moving average close to $2.83 at press time and rising.

Above, we have the $3.40 level providing a lot of resistance. If we can break through that level, then the market has the potential to continue to break through the $4 level, and possibly even higher. I expect a lot of volatility in the short term, so position size is usually crucial, and I wouldn't use high leverage at this price. If the price falls below the 50-day moving average, it would be abnormal, and it would be a very negative signal.

Natural gas 01 day chart

At 01:42 Beijing time, natural gas was reported at $3.147/million British thermal, a decrease of 2.08%.