Superior broker technology provider since 2010
+1 (315) 675 1086 |

Faces Volatility and Supply Concerns

At the end of the day, natural gas faces volatility and supply concerns, impacting market dynamics. 

  • Natural gas markets witnessed a modest rally during Friday’s trading session, driven by mounting concerns over the European supply. The imminent shutdown of the Groningen natural gas field in Holland is anticipated to exert further pressure on European supply.
  • Consequently, liquefied natural gas (LNG) exports from the United States emerged as a viable solution, attracting the attention of major industry players.
  • The market is likely to experience continued upward pressure, prompting longer-term traders to position themselves for what is expected to be a highly volatile fall season. This is going to perhaps set up a longer-term trade eventually.

brokers-we-recommend Forex Brokers We Recommend in Your Region

See full brokers list see-full-broker


Additionally, the 50-Day Exponential Moving Average serves as a supportive factor. However, it is essential to consider the broader market perspective, which suggests an ongoing period of back-and-forth trading. Currently, the price range is projected to hover between $2.00 and $3.00, with the market positioned near the midpoint. Consequently, the next direction appears to be a 50-50 chance. It is worth noting that as summer draws to a close, the natural gas market is likely to adopt a significantly more bullish outlook.

Traders should exercise caution, as the short term is expected to maintain a range-bound nature. While bullish factors exist, careful attention is necessary to identify opportunities for market growth. The ongoing consolidation range indicates that traders are likely to enter the market during dips. The inclination towards buying the dips is gradually becoming a prevalent mentality within the natural gas market.

At the end of the day, natural gas faces volatility and supply concerns, impacting market dynamics. The potential decline in European supply due to the Groningen field’s closure has prompted interest in US LNG exports as an alternative solution. The market is likely to encounter upward pressure, attracting longer-term traders who anticipate a volatile fall season. While the 50-Day EMA offers support, it is crucial to consider the broader context of the market, which suggests a period of back-and-forth trading. Currently, the market is within a range-bound phase, with the price oscillating between $2.00 and $3.00. As summer concludes, a bullish market outlook is anticipated. Traders should exercise caution, as the market remains in a consolidation phase. However, the inclination towards buying the dips is becoming increasingly prevalent. Traders should closely monitor market developments to identify potential opportunities for growth.

Natural GasReady to trade Natural Gas Forex? Here’s a list of some of the best commodities brokers to check out.

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 - 2023 All Rights Reserved.