Interestingly, several large-scale investors have started to stake their claims in the natural gas market. This strategic move is in anticipation of a potential European shortage predicted to significantly impact the natural gas market later this year. Given this backdrop, it's highly likely that the market will continue to regard the $2.00 level as a crucial support point, potentially extending even to the $1.80 level.
If the market successfully breaks above the 50-Day EMA, it could set its sights on higher levels. The initial target would be the $2.75 level, followed by a potential aim for the $3.00 level. This latter level is seen as the upper limit of the overall trading range, and surpassing this could signal a significant shift in market sentiment. This being said, the market is unlikely to see this happen very soon. The market breaking out before the end of summer could be a nice selling opportunity.
Traders should, therefore, view this as an opportunity to incrementally increase their profits, capitalizing on the small price movements that characterize the current market conditions. This approach allows traders to take advantage of potential long-term trades down the line, while simultaneously building up their trading capital in preparation for a larger upward move. This move is anticipated as we transition out of the summer range and into a period of potentially higher volatility and price movement. That being said, this is a market that has hurt a lot of traders in the past, so if a position goes against you, the prudent thing is to get out and minimize losses.
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Source: FXStreetNews - 🏆 14. / 72 Read more »
Source: FXStreetNews - 🏆 14. / 72 Read more »