Natural Gas ekes out all-time highs

As Europe tries to pullout of its reliance on Russia for energy, demand for Natural Gas from other areas of the world has increased. In addition, with the summer months approaching in the northern hemisphere, there will be more demand. However, there are fears that supply won’t be able to keep up. As a result, natural gas prices reached all time new highs today and price jumped over 8%.

What is natural gas and how do you trade it?

On October 26^th, 2021, Natural Gas had made new highs at 6.427 and pulled all the way back to 3.572 by early December 2021. Price then began moving higher once again and on April 11^th, it took out the previous highs. Price rose in parabolic fashion as it became more and more apparent that Europe would try to reduce, and eventually discontinue, its reliance on Russian energy. Natural Gas prices halted just below the 161.8% Fibonacci extension from the highs of October 6^th, 2021 to the low of December 6^th, 2021, at 8.057. At the time, the RSI was overbought near 86.50. RSI readings above 80 are considered overbought and price should be watch for a pullback. Natural gas prices did indeed pullback as the RSI moved back into neutral territory, however, price held the prior highs at 6.427 on April 25^th. Since then, price has been on the move and today, price reached a new all-time high of 8.083. First resistance above the new high is the prior mentioned 161.8% Fibonacci extension at 8.191.

Source: Tradingview, Stone X

Trade Natural Gas now: Login or Open a new account!

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore

On a 240-mintute timeframe, Fibonacci extension levels from the high of April 18^th to the low of April 25^th provide the next resistance levels. The 127.2% Fibonacci extension crosses at 8.518 and the 61.8% Fibonacci extension crosses at 9.10. However, notice that the RSI is diverging with price on the 240-minute timeframe, an indication price may be ready for a short-term pullback. First horizontal support is at 7.413. Below there, price can trade to the lows of April 29^th at 6.721 then the low of April 24^th at 6.379.

Source: Tradingview, Stone X

As Europe tries to rely less and less on Russia for its energy needs, the price of natural gas may continue to rise. Add in hotter temperatures, which increases both demand and worries about a possible lack of supply, and Natural Gas prices may remain high.

Learn more about commodity trading opportunities.

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.