(MENAFN- Daily Forex) During Tuesday's trading session, natural gas prices experienced a mild decline in lackluster trading activity. This gradual downward movement in natural gas futures suggests a potential shift towards the $2.00 level, which has historically served as a significant support level A breach below this level could potentially lead to further descent towards the $1.80 level, representing the bottom of the overall support area in that particular region.
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read full review get started Sustained "Buy-and-Hold" Scenario Conversely, if a reversal occurs and prices begin to rally, the 50-Day Exponential Moving Average could act as a catalyst for a potential move towards the $3.00 level. This level holds psychological importance as a major round figure and attracts considerable attention from market participants. Consequently, there may be resistance and a struggle for control in that area. A breakthrough above the $3.00 level could pave the way for a long-term upward trajectory, potentially targeting the $4.00 level.In general, it is only 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. Given the limitations on purchasing Russian gas and the finite supply from Norway, the demand for natural gas is likely to rise, potentially shifting the market towards a more bullish outlook as summer draws to a close. This transition could prompt a "fade the rally" approach in the near term. However, this is a temporary attitude, and something that could change significantly in the future. At present, the market appears to be oscillating between the $2.00 support level and the $3.00 resistance level . Traders may consider employing a range-bound strategy in the coming 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. While the market currently lacks the necessary momentum for a decisive move, it is anticipated that this situation will change later in the year.Ultimately, the natural gas market is currently constrained within the range of $2.00 and $3.00, establishing a range-bound trading environment. Although a longer-term bullish scenario is expected in the future, the market's current momentum is inadequate. Traders should closely monitor price movements and exercise caution, waiting for a clear breakout before considering more significant positions in the market. Ready to trade fx natural gas ? Here are the best commodity trading platforms to choose from.
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