The recent strike by Israel and the US, along with Iran’s retaliatory actions, has pushed energy asset prices higher. Yesterday, we reported on a bullish gap in oil markets, and while US natural gas prices have not surged as sharply, they are also on the rise. Traders’ attention is focused on news from the Strait of Hormuz, through which around 20% of global liquefied gas shipments pass.
Today’s XNG/USD chart reflects the increase in natural gas prices – driven by concerns over potential disruptions to supply chains.
Technical Analysis of XNG/USD
The long-term descending channel, repeatedly referenced in previous analyses, remains relevant – its median acted as resistance on 6 February.
A notable event occurred on 9 February, when a bearish gap formed on the XNG/USD chart (around the 3.200 level). This area acted as resistance on 12 February.
From a bullish perspective:
- → The market finds support near the 2025 low, likely an economically justified support level close to production costs.
- → The reversal on 26 February resembles a Rounding Bottom pattern.
Currently, US natural gas prices are trading near 1.133, where local February highs formed. However, if escalation in the Middle East continues, XNG/USD may rise toward the noted resistance around 3.200.
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