U.K. Natural Gas Ready to Test 71.78 Pence: Technical Analysis

U.K. natural gas futures expiring in December may rise above 71.78 pence a therm for the first time since Sept. 12 after failing to breach the level three times in October, according to FuturesTechs.

An opening price above 71 pence a therm resolved the question of whether the contract would fall back below 70.4 pence a therm or continue climbing after a 1.2 percent gain yesterday, Clive Lambert, founder of FuturesTechs in Billericay, England, wrote in an e-mailed report.

“All we ask now is a hold of 71.00 on weakness, then we can think about a fresh test of 71.78,” he said.

The contract touched 71.78 pence a therm on Oct. 24 before ending the session at 71.6 pence, according to ICE Futures Europe exchange data. It reached 71.75 pence Oct. 28 and Oct. 29.

In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.

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