Market Analysis: Natural Gas Price Reaches 8-month High

<img src="https://images.unsplash.com/photo-1516937941344-00b4e0337589?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDl8fGdhc3xlbnwwfHx8fDE2OTY5MjI4MDN8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="Market Analysis: Natural Gas Price Reaches 8-month High" /><p>As the chart shows, yesterday, the price of gas rose above USD 3.60 for the first time since January of this year.</p><p>It can be assumed that events in Israel contributed to the price increase, since the Middle East is an important supplier of gas.</p><p>However, note that the bullish momentum started much earlier — gas prices have risen approximately 20% since the October 3 low. This confirms our assumptions about the bullish trend, which we published in the review on August 25th.</p><p>Perhaps the price of gas is influenced by seasonal factors and fears that weather conditions in the coming winter will be difficult.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/10/101.png" alt="Market Analysis: Natural Gas Price Reaches 8-month High" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/10/101.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/10/101.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/10/101.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/10/101.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Should we count on the continuation of the bullish trend?</p><p>If forecasters’ predictions worsen and the conflict in the Middle East flares up, this will certainly increase the likelihood of further price increases.</p><p>But in the short term, there are prerequisites for the formation of a rollback, since:<br>→ RSI indicates severe overbought;<br>→ the price has reached the upper limit of the parallel channel;<br>→ the tapering candles of the last days and the beginning of Tuesday demonstrate the presence of sellers — it is permissible to assume that buyers are taking profits.</p><p>Please note that on Thursday at 17:30 GMT+3, gas reserves data will be published —  this may affect the current balance of supply and demand.</p>