In general, natural gas markets have been turbulent since the market has developed a wide range. We are currently testing support near $5.50, so I believe a little amount of volatility is to be expected. Remember that we had an opening gap on Monday and have yet to close it. Because of this, I believe there could be a short-term bounce, but I foresee a return of sellers to the market.
You should only trade with capital that you can afford to lose while trading derivatives. The trading of derivatives may not be suitable for all investors; thus, you should ensure that you fully comprehend the risks involved and, if necessary, seek independent counsel. Before entering into a transaction with us, a Product Disclosure Statement (PDS) can be received through this website or upon request from our offices and should be reviewed. Raw Spread accounts offer spreads beginning at 0 pips and commissions of $3.50 every 100k traded. Spreads on standard accounts begin at 1 pip with no additional commission fees. CFD index spreads begin at 0.4 points. This information is not intended for inhabitants of any country or jurisdiction where distribution or use would violate local law or regulation.
In addition, the 50-Day EMA is attempting to fall beneath the 200-Day EMA, making the so-called “death cross.” Although I’m not a major admirer of this signal, some individuals will pay close attention to it. Nonetheless, I believe that these moving averages may also generate a small amount of resistance, so keep that in mind. Ultimately, this is a market that I believe breaks through the bottom, as demand for natural gas will continue to decline as a result of the weakening economy, leading to a decline in industrial demand.
Nevertheless, I do not anticipate a full collapse in natural gas prices, as there will be a substantial amount of demand over the winter, but warmer temperatures in the United States have not helped. You will notice that I have placed a purple circle at the $8 level on the chart, which is lower than the top of the entire range, so it does anticipate the likelihood of a collapse to some extent. Ultimately, fading rallies will likely be the simplest method for trading natural gas.
