This approach allows traders to take advantage of potential long trades on the line while simultaneously building their trading capital in preparation for a larger move up.

• During Thursday’s trading session, natural gas markets saw a slight recovery and approached a major 50-day high Exponential moving average. This indicator carries significant weight for many market participants, and its approach could trigger a wave of increased volatility in the natural gas markets.
• However, it is important to note that the trading range remains relatively narrow, a common feature during the summer season, which often results in unclear market direction.
• Despite this, demand for natural gas is expected to remain strong, especially with the current global economic slowdown leading to changes in energy consumption patterns.

Interestingly, several large investors have begun to stake their claim in the natural gas market. This strategic move is in anticipation of a potential shortage in Europe, which should significantly affect the natural gas market later this year. Against this backdrop, it is highly likely that the market will continue to view the $2.00 level as a key support point, potentially extending to the $1.80 level.

If the market successfully breaks above the 50-day EMA, it could target higher levels. The initial target would be the $2.75 level, followed by a potential target of the $3.00 level. This second level is considered the upper limit of the overall trading range, and crossing it could signal a significant shift in market sentiment. That being said, it’s unlikely to happen very soon. The market that breaks out before the end of the summer could be a nice selling opportunity.

However, it is important to keep in mind that the market is expected to experience significant short-term fluctuations. This volatility calls for a focus on short-term scalping strategies, as extended market moves are unlikely in the near term. Traders should therefore see this as an opportunity to gradually increase their profits and benefit from the small price movements that characterize the current market conditions.

This approach allows traders to take advantage of potential long trades on the line while simultaneously building their trading capital in preparation for a larger move up. This movement is expected as we transition from the summer range to a period of potentially higher volatility and price movement. That being said, this is a market that has hurt many traders in the past, so if the position goes against you, it is wise to get out and minimize your losses.

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