Natural Gas Forecast: Market Faces Subdued Sentiment With Po
(MENAFN- Daily Forex) During early electronic trading in the Friday session, the natural gas market experienced a slight decline, sparking concerns among traders and investors. However, the market managed to hold its ground above the critical 50-Day Exponential moving average , providing a glimmer of hope for a potential bottoming pattern. This pattern suggests that the market may enter a phase of sideways movements in the short term, offering opportunities for strategic trading.
Forex Brokers We Recommend in Your Region See full brokers list 1 ![brkr-logo]()
read full review get started Several factors contribute to the current subdued state of the natural gas market, with reduced summer demand in the northern hemisphere being a primary driver. As industrial activity slows down and electricity consumption decreases during the summer season, the demand for natural gas experiences a dip. Consequently, the market tends to exhibit relatively calm price movements, often leading to sideways trading. Despite this lull, traders must stay alert, as market sentiment can quickly shift as the winter season approaches.The upcoming winter months hold significant importance for the natural gas market, as they can potentially bring about a considerable shift in sentiment, leading to a more bullish outlook. During colder periods, natural gas plays a crucial role in heating many households, especially in the United States. If a heatwave occurs during the winter season, it could trigger a surge in natural gas demand, ultimately driving prices higher. As a result, closely monitoring weather forecasts becomes imperative for traders and investors to gauge the potential impact on natural gas demand.Market Faces Subdued SentimentGeopolitical tensions in Europe also contribute to the market's dynamics, particularly in terms of supply disruptions. The ongoing conflict in Ukraine has led to uncertainties in the region's natural gas supply, prompting European countries to explore alternative sources. Despite higher costs, some European nations may turn to the United States for liquefied natural gas to mitigate supply shortages during this ongoing conflict. For traders and investors in the natural gas market, the $3.00 price level is of paramount importance. This level holds both psychological significance as a round number and practical importance due to the presence of options barriers. A successful breach of this level could attract considerable attention from traders and potentially lead to a bullish trend in the market.In the end, the natural gas market currently faces subdued sentiment, with reduced summer demand in the northern hemisphere contributing to sideways price movements. However, traders should not overlook the potential for a reversal in sentiment during the upcoming winter months, which could lead to increased demand and a more bullish outlook. Geopolitical tensions in Europe also impact the market, prompting considerations of alternative supply sources. Monitoring the $3.00 price level is crucial for traders, as it holds significant importance and could influence market sentiment.Ready to trade our forex daily forecast ? We've shortlisted the best fx trading platform in the industry for you.
MENAFN01082023000131011023ID1106763420
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.