Jump to content

Natural gas pullback looks like buying opportunity


MongiIG

Recommended Posts

Natural gas pullback brings potential buying opportunity, with concerns over winter supply expected to drive price up through $10

BG_oil_pump_Brent_WTI_gas_flare_23423477Source: Bloomberg
 Joshua Mahony | Senior Market Analyst, London | Publication date: Wednesday 24 August 2022 

Natural Gas pullback brings potential buying opportunity

Natural gas has been rare bright spot over the course of this year, with prices continuing to surge on the back of supply constraints. The Russian invasion into Ukraine brought great friction with Europe, ultimately leading many to shift away from Russian imports. The process of shifting supply will take time, and continued issues facing the Nord Stream 1 pipeline point towards difficulties getting gas even if they want it. This issue has reared its head once again recently, with Gazprom planning to lock off flows for ‘maintenance’ between 31 August and 2 September. The natural gas chart below highlights the pricing at Henry Hub in the US. However, with the US increasingly exporting to Europe, supply is similarly tightening to the benefit of prices. The impending winter brings the certainty of higher demand for gas, with some fearing possible restrictions for businesses. With that in mind, there is a good chance we see further upside as we move forward.

The chart below highlights how Natural Gas has managed to push into the crucial $9.655 resistance level this week, with price hitting $10 for the first time since 2008. While we have seen a pullback since, there is a good chance that the bulls come back into play before long.

NG-Daily-2022_08_24-13h14.pngSource: ProRealTime

The four-hour chart shows how price has dropped back into the 76.4% Fibonacci support level, with the selling pressure easing off since. With that in mind, another push up through the $10 mark looks likely as we see to build on this bullish trend.

NG-4-hours-2022_08_24-13h17.pngSource: ProRealTime
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Hi @Omegaguy123, Please note that this is due to the higher broker margin requirements which will need to be transferred to the client and make leveraged trading unfeasible. Thanks, KoketsoIG
    • Elliott Wave Analysis TradingLounge Daily Chart, 22 February 24, ChainLink/ U.S. dollar(LINKUSD) LINKUSD Elliott Wave Technical Analysis Function: Follow Trend Mode: Motive Structure: Impulse Position: Wave V Direction Next higher Degrees: Wave (I) of Impulse Wave Cancel invalid Level: 8.498 Details: Wave V is equal to 61.8% of Wave I through Wave III at 23.117 ChainLink/ U.S. dollar(LINKUSD)Trading Strategy: The increase in wave ((3)) precedes the correction in wave ((5)) and is at the end of the increase, so watch out for a correction that will occur soon. ChainLink/ U.S. dollar(LINKUSD)Technical Indicators: The price is above the MA200 indicating an Uptrend, Wave Oscillators a bullish Momentum. TradingLounge Analyst: Kittiampon Somboonsod, CEWA Source : Tradinglounge.com get trial here!         Elliott Wave Analysis TradingLounge 4Hr Chart, 22 February 24, ChainLink/ U.S. dollar(LINKUSD) LINKUSD Elliott Wave Technical Analysis Function: Follow Trend Mode: Motive Structure: Impulse Position: Wave V Direction Next higher Degrees: Wave (I) of Impulse Wave Cancel invalid Level: 8.498 Details: Wave V is equal to 61.8% of Wave I through Wave III at 23.117 ChainLink/ U.S. dollar(LINKUSD)Trading Strategy: The increase in wave ((3)) precedes the correction in wave ((5)) and is at the end of the increase, so watch out for a correction that will occur soon. ChainLink/ U.S. dollar(LINKUSD)Technical Indicators: The price is above the MA200 indicating an Uptrend, Wave Oscillators a bullish Momentum.    
    • EURUSD Elliott Wave Analysis Trading Lounge Day Chart, 22 February 24 Euro/U.S.Dollar(EURUSD) Day Chart EURUSD Elliott Wave Technical Analysis FUNCTION: Trend MODE: Impulsive STRUCTURE: blue wave 1 POSITION: Black wave 3 DIRECTION NEXT LOWER DEGREES:blue wave 2   DETAILS: blue wave Y of 2 looking completed at 1.06985 . Now blue wave 1 of 3 is in play . WaveCancel invalid level: 1.06985 The "EURUSD Elliott Wave Analysis Trading Lounge Day Chart" for 22 February 24, provides a comprehensive analysis of the Euro/U.S. Dollar (EURUSD) currency pair, employing Elliott Wave principles to offer insights into potential market movements. This analysis is conducted on a daily chart, providing a broader perspective on the market. The primary identified "FUNCTION" is "Trend," indicating the focus on understanding and capitalizing on the overarching direction of the market. Recognizing the trend is vital for traders to align their strategies with the prevailing market sentiment. The specified "MODE" is "Impulsive," suggesting that the market is currently characterized by strong, directional price movements. Impulsive waves typically represent the core trend and offer substantial trading opportunities. The described "STRUCTURE" is "Blue wave 1," signifying the current phase within the Elliott Wave sequence. Wave 1 is often the initial stage of a new trend and is closely monitored by traders for potential opportunities to enter or exit positions. The designated "POSITION" is "Black wave 3," indicating the current placement within the broader Elliott Wave pattern. Wave 3 is typically the most forceful and extended wave in the sequence, signifying a robust trend in the direction established by the first two waves. In terms of "DIRECTION NEXT LOWER DEGREES," the analysis highlights "Blue wave 2," suggesting an anticipated corrective wave following the completion of the impulsive Blue wave 1. The "DETAILS" section specifies that "Blue wave Y of 2 looking completed at 1.06985. Now blue wave 1 of 3 is in play." This implies the conclusion of a corrective phase (wave Y of 2) and the initiation of the powerful impulsive wave 1 of 3. The "Wave Cancel invalid level" is set at 1.06985. This level is critical for traders as it represents the point at which the current wave count would be invalidated. In summary, the EURUSD Elliott Wave Analysis for the day chart on 22 February 24, indicates a strong impulsive trend with the market commencing Blue wave 1 of 3. Traders are advised to monitor the development of this wave and be mindful of the invalidation level at 1.06985. Technical Analyst : Malik Awais Source : Tradinglounge.com get trial here!    
×
×
  • Create New...
us