Natural Gas is set to test the bar again near $1.80 as traders see a floor on the charts. The expected recovery comes, firstly, because there are prospects of a pickup in demand during the summer. Secondly, the fight between Russia and the US on market share will likely come with a price war. However,Gas traders might be willing to pay a higher price for US Gas, whose delivery is likely to be more secure compared to the cheaper Russian Gas, more subject to sanctionsand bottlenecks.
On the upside, Natural Gas is facing some pivotal technical levels to get back to. The next step is $1.99, – the level which, when broken, saw an accelerated decline. After that, the green line at $2.13 comes into view, with the triple bottoms from 2023. If Natural Gas sees sudden demand pick up, $2.40 could come into play.
On the downside, $1.64 and $1.53 (the low of 2020) are targets to look out for. Another leg lower could come if global growth starts to shrink and there is less demand. Add to that equation both the US and Canada trying to free up more volume of Natural Gas mining, and the scale could quickly tip into an oversupplied market with more downside prices at hand.
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