Selling natural gas to 3.625 amid Trump’s LNG export plans

Natural gas price has stabilized near the monthly high of $4.42 reached on Monday. The price growth is supported by January’s freezing weather in America, which increases heating demand and raises the possibility of a slowdown or temporary suspension of gas production and processing in some regions.

According to the NatGasWeather.com data, cold temperatures have gripped most of the northern regions of the US.

The portal forecasts that from Sunday through Friday next week, the domestic demand for gas will grow significantly due to Arctic invasion, which will affect not only northern states but also southern regions, including Texas.

However, growing price prospects are limited due to the US President-elect Donald Trump’s plans. After inauguration, he intends to lift oil and gas production restrictions imposed under Joe Biden. Additionally, Trump plans to initiate lifting the moratorium on approving new liquefied natural gas (LNG) export projects. Sources close to his team say that these measures are aimed at strengthening US energy independence and creating jobs.

The US is still one of the biggest LNG suppliers, and oil and gas production projects play a key role in the country's energy security. Increased availability of US fuel will create additional supply in the market, putting more pressure on prices.

From the technical point of view, natural gas price is showing an upward trend on the daily chart (D1). Meanwhile, the Relative Strength Index (standard settings) indicates the possibility of reversal and formation of downward correction within the current ascending channel.

Signal:

The short-term outlook for natural gas suggests selling. 

The target is at the level of 3.600.

Part of the profit should be taken near the level of 3.850.

A stop-loss could be placed at the level of 4.445.

The bearish trend is short-term, so a trading volume should not exceed 2% of your balance.