(MENAFN- Daily Forex) natural gas prices experienced a slight decline during Monday's trading session, which was characterized by thin electronic trading. The gradual downward movement of natural gas futures indicates a potential move toward the $2.00 level, which has been a significant support level in the past. If the price were to break below this level, it is likely that it would further descend toward the $1.80 level, representing the bottom of the overall support area in that region.
Advertisement take advantage of today's crude oil movements trade now On the contrary, if a reversal were to occur and the price started to rally, the 50-Day Exponential moving average could pave the way for a potential move toward the $3.00 level. The $3.00 level holds considerable psychological significance as a major round figure, attracting significant attention from market participants. Therefore, it is expected that there would be some resistance and a struggle for control in that area. A breakthrough above the $3.00 level could potentially propel the price toward the $4.00 level over the long term. In general, it is a matter of time before we witness a more sustained "buy-and-hold" scenario in the natural gas market, particularly during the summer months when European countries need to replenish their natural gas storage. The limitations on purchasing Russian gas and the finite supply from Norway create a situation where demand for natural gas may increase. Consequently, the market could transition towards a "pay the rally" approach in the near term, with a potential shift towards a bullish outlook as summer draws to a close.Traders Should Monitor Price MovementsCurrently, it appears that the market will continue to oscillate between the $2.00 support level and the $3.00 resistance level. Traders may consider implementing a range-bound strategy over the next few weeks to capitalize on short-term opportunities within this price range. However, it is important to note that this consolidation phase will eventually lead to a breakout. At present, the market lacks the necessary momentum for a decisive move. However, I do these changes later this year.Ultimately, the natural gas market is currently caught between the $2.00 and $3.00 levels, prompting a range-bound trading environment. While a longer-term bullish scenario is expected in the future, the market's momentum is currently lacking. Traders should closely monitor price movements and wait for a clear breakout before considering more significant positions. Ready to trade fx natural gas ? We've shortlisted the best commodity brokers in the industry for you.
MENAFN29052023000131011023ID1106347933
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.