MTECHTIPS;- Natural Gas Price Fundamental Daily Forecast

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MTECHTIPS;- Natural Gas Price Fundamental Daily Forecast

MTECHTIPS-Natural gas futures are trading lower Wednesday, shortly before the regular session opening. The weakness is being fueled by a combination of technical and fundamental factors. At 1024 GMT, September natural gas futures are trading $2.764, down $0.020 or -0.68%. Technically, new hedgers stepped in on Tuesday to stop the rally at a major 50% level at $2.831. This did not come as a surprise and had actually been forecast because the entrancement zone at $2.831 to $2.869 is a natural resistance zone, and secondly, seasonal factors had us looking for the return of hedgers during the late July/early August time period. Fundamentally, sellers were reacting to reports of record-level production and the potential for cooler temperatures after mid-month. The U.S. Energy Information Administration (EIA) on Tuesday updated its monthly production data, showing U.S. natural gas output for May, setting a new all-time record. The EIA said May 2018 production averaged 80.4 Bcf/d (2,491 Bcf total), an 8.6 Bcf/d (12%) increase year/year (y/y) and the highest total recorded by the agency for data going back to 1973. Short-Term Weather Forecast from www.mtechtips.com