In the US and other countries, natural gas prices look ready to take the next directional move of this season amid fresh policy changes on the tariff front by the Trump administration this month.
Undoubtedly, the natural gas futures could remain extremely volatile as the Arctic surge is pushing natural gas prices upward while the surging scepticism over the impact of fresh tariff policy by President-elect Donald Trump could keep the natural gas prices in a downward direction as we may see tariffs on countries that continue to do business with Iran.
Natural gas futures could change their direction soon as this tariff list comes out as a sudden surge in volatility in currencies could result in volatility in energy prices amid changing geo-political equations.
On the other hand, Trump’s view on wind energy could take a U-turn since Donald Trump Jr. is expected to visit Greenland on Tuesday as his father, U.S. President-elect Donald Trump, has again expressed interest in gaining control over the vast Arctic island.
Secondly, his policy on the use of fossil fuel will likely to be noticed if the Trump administration comes with some modified version.
On the technical front, I find the natural gas futures looked under bearish pressure even before the announcement of this renewed tariff list.
Technical Levels to Watch
Daily Chart: After hitting a high at $4.201 on Dec.30, 2024, natural gas futures remain under selling pressure amid a sudden surge in volatility. During this week, the upside was capped at $3.661 as the natural gas futures are trading well below the 9 DMA, and taking support at 20 DMA at $3.433.
In today’s session, bearish pressure seems to be high as the slide could continue to test the immediate support at 20 DMA. If the natural gas futures find a breakdown below this support, the next support will be at 50 DMA at $3.236.
Disclaimer: Readers are requested to take any position at their own risk as this analysis is based on the observations.