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NATGAS to suffer seasonal losses

This morning I would like to put attention to the commodity market. Natural Gas is vunerable to the risk-on / risk-off sentiment and any changes in oil prices.

NatGas shows a very seasonal behavior with big price movements in correspondance to winter months; the weeks before these movements started, volumes had the tendency to consistently increase.

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This is what has been happening during recent weeks again, an increase in contracts. The price has been edging lower in the last 20 days (-15%) but basically it has been trapped in the same range since mid-summer. Now it is just clearly testing a trendline and approaching the 2.475 level. It was the support level from where price rebounded at the end of 2017; 2.43 / 2.55 area should be observed.

Don’t get me wrong: NatGas has a clear long term structural descending prices trend, probably pushed by improvement and innovations in the production and logistic chain.

But right now, I think it’s worth having a look at how to choose a buying strategy here.

Stay safe

The material has been provided by InstaForex Company - www.instaforex.com
via NATGAS to suffer seasonal losses
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