Natural Gas Forecast: Continues To Drift Around

(MENAFN- Daily Forex)

• The natural gas market has shown very little movement during Wednesday's trading session, with prices continuing to grind sideways.
• The market is facing a major problem, as the potential economic slowdown is likely to reduce the demand for industrial electricity, which is a major source of demand for natural gas.
• Additionally, with the summer season approaching in the northern hemisphere, the demand for natural gas is likely to decline further, except for occasional heat waves.

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Despite the precarious situation for natural gas, it is worth noting that the commodity has experienced a significant sell-off, and there will eventually have to be some type of bounce. Looking ahead, natural gas is likely to attract attention later this year, as Europeans will have to replenish their natural gas supplies, and Russian gas is no longer a viable option. This is likely to lead to increased volatility in the market and potentially a spike in prices.

In the meantime, the market is likely to see a lot of sideways and noisy behavior. The 50-Day ema is sitting just above, and it is expected to attract a certain amount of attention. Around the $2.50 level, there is likely to be a lot of selling pressure. If the market can break above this level, the next resistance barrier is likely to be around the $3.00 level, which is a large, round, and psychologically significant figure.The Market is Facing a Number of Challenges

In the short term, the $2.00 level is likely to serve as a floor in the market, but support extends all the way down to the $1.80 level. Overall, there is more risk to the upside than the downside, but there is not enough momentum to make a significant move in either direction at the moment. This could change, but I would not be betting a lot of money on any particular move at the moment. Natural gas can make a great day trading vehicle, but that's about it at the moment.

Ultimately, the natural gas market is facing a number of challenges, including a potential economic slowdown and declining demand during the summer season. However, there is also potential for increased volatility later this year, as Europeans look to replenish their natural gas supplies. In the short term, the market is likely to see sideways and noisy behavior, with resistance at the $2.50 and $3.00 levels.

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