Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Continues to See Choppy and Bearish

[ad_1]

While natural gas can be a challenging market for traders, those who can stay patient and focus on finding value on the downside are likely to find success.

Natural gas has been facing bearish momentum over the last few sessions, despite a recent recovery. The negative Wednesday candlestick has confirmed the market’s bearish direction, and while there might be some chances for short-term gains, long-term traders may find it challenging to make swing trades until the market starts to rally significantly again.

Advertisement

There are several factors contributing to the bearish trend, including a lack of demand and warmer temperatures that generally drive down prices at this time of the year in the United States and Europe. Additionally, concerns about the global economy could further reduce the demand for natural gas to produce power, leading to even lower prices.

The $2.00 level continues to be an important support level and could serve as a target for traders. If the market breaks down below this level, the $1.80 level could be the next target, although that move is not necessarily imminent. On the upside, the 50-Day EMA is just above the $2.50 level, and the $3.00 level remains a psychologically significant resistance level that could be tough to break.

  • Overall, traders can expect continued volatility in the natural gas market, and while there might be some short-term gains, the bearish trend is likely to prevail for several months.
  • One possibility that could shift the market’s direction would be the European Union’s decision to fill its storage tanks while prices are low.
  • Until then, however, traders should focus on finding value in the downside and not expect a significant change in the market’s direction anytime soon.

While natural gas can be a challenging market for traders, those who can stay patient and focus on finding value on the downside are likely to find success. By keeping an eye on support and resistance levels and monitoring any developments that could impact demand, traders can position themselves to take advantage of any opportunities that arise. The EU will eventually have to start buying again, but that could be months down the road, and this time of year is very negative as far as demand is concerned. The market will occasionally see a little bit of a jump, perhaps based on hot weather, but those are temporary at best, and therefore I would look at the rallies as a selling opportunity for the time being.

Natural Gas

Ready to trade FX Natural Gas? We’ve shortlisted the best commodity trading brokers in the industry for you.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.