Tuesday saw a decline in natural gas prices as the heat wave in the United States finally abated. This reduces the demand for natural gas markets, which, along with the notion that Europeans would not purchase LNG, positions this market for a return to fairly normal conditions. The absence of a heat wave in the United States will provide at least a decent opportunity for the sector to restore its supplies.
The 50 Day Exponential Moving Average is located at $7.37 and might be considered the next target. The potential of attempting to reach the $7.00 level is created if this level is broken. Breaking it then enables a decline to the 200-day exponential moving average. This market, I believe, will continue to exhibit extreme volatility inside a crazily wide range. Clearly, there will continue to be a great deal of commotion, but oddly, winter may be when we see the most price stability.
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 required, 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 provide spreads beginning at 0 pips and commissions of $3.50 every 100k transacted. 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 nation or jurisdiction where distribution or use would violate local law or regulation.
This is generally the most expensive time of the year, but this year has been anything but conventional. If some form of peace can be reached between the Russians and the Ukrainians, then prices will plummet. Despite the fact that it has nothing to do with Henry Hub, the markets occasionally appear to be oblivious to this fact. If there is a recession in the United States, industrial demand would likely decrease as well.