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Natural Gas stuck at a technical resistance

FXStreet (Mumbai) - Natural gas prices recovered yesterday from 2014 lows on profit booking, although the commodity is still hovering around 11-month lows today.

Natural Gas is trading 0.77% lower at USD 3.683/mmbtu, after having faced rejection around a technical resistance of USD 3.725 earlier today. Moreover, the commodity had recovered yesterday in a move that was largely chart driven. The commodity was probably oversold which triggered a minor bout of profit booking.

Meanwhile, markets continue to weigh the near-term forecasts for mild weather against the uncertainty over the how much the demand would pick-up in the peak season of winter. "Prices will stay depressed until the market receives signs of demand, either through colder weather or power generation," said Aaron Calder, analyst at Gelber & Associates in Houston, in a note.

Natural Gas Technical levels

Natural Gas has an immediate resistance of 3.725 (July 28 low), above which prices can rise to 3.76 (Aug 8 low). On the flip side, prices may fall to 3.631 levels if the daily low of 3.669 is breached.

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