Can natural gas fall in line with seasonals? [Video]
Natural gas prices have been surging recently and that has resulted in some major concerns about a so-called ‘energy crunch’. Furthermore, natural gas inventory levels have been really low, particularly in Germany, and that has been boosting prices. So, the question now is, ‘ will the weak seasonals come into play or will the low inventory levels keep prices supported? Natural gas is a tricky market to trade right now, but with recent blow-off price action from early October, it might be due a deeper pullback.
Over the last 10 years, WTI crude has fallen 08 times between October 31 and December 30. The average loss has been -10.57%. The largest gain was +20.57% in 2013 and the largest loss was -28.69% in 2020.
Major Trade Risks: The main risk to this trade is natural gas resuming its uptrend on a cold winter in Europe and falling inventory levels.
Learn more about HYCM
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.