MTECHTIPS;-Natural Gas Price Fundamental Daily Forecast

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MTECHTIPS;-Natural Gas Price Fundamental Daily Forecast

MTECHTIPS-Natural gas futures are edging lower early Thursday, shortly before the regular session opening and the release of the weekly government storage report at 1430 GMT. The weakness is being fueled by a combination of technical and fundamental factors. At 0828 GMT, September natural gas futures are trading $2.745, down $0.013 or -0.47%. Let’s take a look at the chart since technical factors are playing an equal role in the market’s weakness as much as the fundamentals. The main range is formed by the June high at $2.992 to the July low at $2.671. Its 50% to 61.8% entrancement zone at $2.831 to $2.869 is the primary upside target and resistance. The lower or 50% level at $2.831 stopped the buying on Tuesday. The short-term range is $2.671 to $2.831. Its entrancement zone at $2.751 to $2.732 is the primary downside target. This zone is currently being tested. Since the short-term trend is up based on the higher-high, higher-low chart pattern, buyers are likely to show up inside this zone. Fundamentally, sellers are reacting to reports of record-level production and the potential for cooler temperatures after mid-month