With market pressure mounting, it seems increasingly likely that a breakout is on the horizon.

  • early friday natural gas markets showed little movement, with traders seemingly digesting significant gains made on Thursday.
  • As market conditions stabilize, expectations are growing that prices could soon approach the $3.00 level.
  • This round, psychologically significant figure is likely to attract significant investor attention and could act as a trigger for a potential breakout.
  • If we manage to break this crucial level, expect to see an increase in “FOMO trading” as traders rush to take advantage of this obvious bullish momentum.

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Support for natural gas prices can be found below current market levels, specifically at the 50-day exponential moving average. This support was crucial in attracting buyers during price dips, helping to form a longer-term bottom. Therefore, investors should not be surprised to see continued buyer interest at these levels.

With market pressure mounting, it seems increasingly likely that a breakout is on the horizon. With this perspective in mind, the idea of ​​adding to existing positions seems appealing. As the summer progresses, the market may witness a significant upswing, which will be driven by various factors affecting the dynamics of supply and demand.

Given seasonality and the potential for a bullish breakout, shorting natural gas does not appear to be a prudent strategy. While short-term traders may find profit opportunities within the range, patient investors have a chance to profit significantly from the breakout. Expecting such a profitable move requires a cautious and long-term approach to trading.

As a US trader, I personally use the ETF market for my natural gas positions. However, traders in other countries can use the CFD market, which offers more flexibility in managing position sizes compared to futures contracts. As the exact timing of the market breakout remains uncertain, holding the trade for longer seems more prudent. The potential for investment to double by the fall is certainly enticing, making natural gas an attractive asset to watch in the coming months.

At the end of the day, natural gas markets are currently experiencing a period of consolidation after significant gains. The $3.00 level is of key importance and could trigger a potential breakout, leading to increased trading activity. With support from day 50 EMA and a growing sense of market pressure is a likely prospect for higher prices in the future. Being patient and preparing for the possibility of a profitable breakout may prove to be a wise strategy for investors interested in the promising potential of the natural gas market.

Natural gas

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