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Natural Gas at more than three years lowIf we look at the global financial markets, the price of natural gas has fallen by about 40%, and here comes the moment to ask ourselves whether this negative decline represents an opportunity for investors. To analyze this situation we decided to compare the average return of the asset against seasonality. This is cautioned, in no way should it be taken as investment advice, and investors should keep in mind that natural gas is an extremely volatile commodity! The two periods in which the price of natural gas fell below $2 were March 2016, when it reached a low of $1,611, and June 2020, with a low of $1,250. It is the last price that is the lowest point of the raw material for decades, but it should be taken into account that it was reached at a time of mass panic, due to the then spreading coronavirus. If we look historically at what gas does one year after reaching a price below $2, we can see that in both years there is a positive performance the following year. After the decline in 2016, the commodity is up 98 percent, and the next time it is below $2, it is again up 45 percent above its marked bottom.
PEPPERSTONE:NATGASLong
by Elite_Forex
Alternative Investment OptionsAlternative Investment Options Traders and investors are increasingly turning to alternative investment options to diversify their portfolios and seek new avenues for potential returns. In this FXOpen article, we discuss alternative investments, examining the types and explaining the reasons why they are gaining traction. What Is an Alternative Investment? Alternative investments deviate from conventional stocks, bonds, and cash, presenting investors with a diverse range of opportunities characterised by the nature of the assets and the unique market dynamics they inhabit. These alternatives can be broadly classified into tangible assets like real estate and art and intangible assets such as private equity, hedge funds, and cryptocurrencies*. This dual categorisation introduces a distinctive dimension to portfolio construction, allowing investors to strategically blend tangible and intangible assets for a well-balanced and diversified investment strategy. In contrast to traditional investments traded on public exchanges with comprehensive regulatory oversight, which typically offer lower volatility and moderate returns, alternative investments, operating in less liquid markets, hold the potential for higher returns but require specialised knowledge and careful attention to regulatory considerations, contributing to their increased complexity and risk. Alternative Investment Types For each alternative investment type, investors must consider their personal investment objectives and risk tolerance, as each of the assets discussed below has its specifics. Real Estate Real estate is a tangible alternative investment class, providing investors with exposure to potential price appreciation and a steady rental income, whether through direct ownership or Real Estate Investment Trusts (REITs). Real estate investments necessitate a long-term outlook, require significant upfront capital, and are also susceptible to market conditions. Private Equity Private equity entails investing in private companies not listed on public stock exchanges, with diverse investment options such as venture capital, buyouts, and direct investments in private firms. This investment class is characterised by a longer investment horizon, allowing active involvement in the growth of the invested companies. Considerations include high barriers to entry due to larger investment commitments and the necessity for specific expertise. Hedge Funds Hedge funds are investment funds employing diverse strategies, such as long-short equity, macroeconomic bets and high leverage and derivatives trading to generate returns. Notably, these funds often aim for absolute returns regardless of prevailing market conditions. Hedge fund investments are often associated with higher fees compared to traditional investment funds. Also, investors need to understand and monitor the diverse range of strategies employed by these funds. Commodities Commodities encompass tangible assets with intrinsic value, such as precious metals, agricultural products, and energy resources. Commodity prices are influenced by supply and demand dynamics and are mostly used as a hedge against inflation and geopolitical risks. Commodities offer limited returns compared to other assets, while the necessity for physical storage in some cases can be a major disadvantage. Art and Collectables This alternative investment class involves acquiring unique and valuable items, such as art, antiques, and rare collectables. Returns are often linked to the appreciation of these items' cultural or historical significance, though valuation can be subjective and influenced by trends. Major considerations are the difficulty in valuing items, the susceptibility to changing trends and tastes, and the requirement for expertise in the specific market. Cryptocurrencies* Cryptocurrencies* are digital or virtual assets that utilise cryptography and blockchain technology, with notable examples being Bitcoin and Ethereum. The potential long-term benefits of investing in cryptocurrencies* often hinge on their transaction transparency, decentralised nature, and borderless markets, offering advantages in terms of financial inclusion and accessibility. However, it's crucial to acknowledge potential challenges, such as regulatory uncertainty and cybersecurity issues, that can impact the overall risk and viability of cryptocurrency* investments. Peer-to-Peer Lending Peer-to-peer lending utilises online platforms to connect borrowers directly with individual lenders, facilitating loans without traditional financial intermediaries. Returns are generated through interest payments. The potential benefits encompass the advantage of direct lending without the need for a banking intermediary. Considerations involve default risks on loans and a lack of regulatory oversight compared to traditional financial institutions. Reasons to Consider Alternative Investment Options Alternative investments exhibit lower correlations with each other, which mitigates the impact of downturns in specific market sectors, reducing overall portfolio volatility. Alternative assets present opportunities for potential returns, surpassing those of traditional investments. Another valuable feature is the inconsistent correlation of alternative investments with traditional assets like stocks and bonds, offering independence and strategic advantages during market turbulence. Furthermore, commodities and real estate have historically demonstrated resilience against the erosive effects of inflation, serving as effective hedges and preserving wealth in inflationary environments. Alternative investments can thus contribute to an enhanced risk-adjusted return for a portfolio. By strategically incorporating assets that respond differently to market conditions, investors may achieve a more efficient balance between risk and reward. This nuanced approach to portfolio construction aims to maximise returns for a given level of risk tolerance. Risks and Challenges While alternative investments offer unique opportunities, there are also inherent complexities. - Illiquidity stands out as a prominent risk, particularly in assets like real estate, private equity, and certain hedge funds, where longer holding periods hinder the swift conversion to cash. This limitation may impede timely responses to market changes or the exploitation of emerging opportunities. - The heightened level of complexity of alternative assets demands a sophisticated understanding of strategies, valuations, and market nuances. Successful navigation of this complexity requires ongoing education and engagement. - Increased market volatility is another issue to consider, exemplified by significant price swings in cryptocurrencies* and distinct volatility in hedge fund strategies. In alternative investments, thorough due diligence involves researching each asset class, rigorously evaluating fund or investment managers, and maintaining a robust risk management framework with clear parameters, regular portfolio monitoring, and contingency plans for unforeseen events. Conclusion Alternative investments offer a compelling avenue for diversification and potential returns. While not without risks, the unique characteristics of alternative assets make them a valuable addition to a well-balanced investment portfolio. However, if you want to stick to traditional markets, you can trade forex or use derivatives to enter stock, commodity, and cryptocurrency* markets. Open an FXOpen account and try out the possibilities on the free trading platform, TickTrader. *At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:XNGUSDEducation
by FXOpen
1
Natural Gass CompassIn this one I use my preferred charting tool that uses data points from the past: Curved Trendlines. While there are other variations of such lines that I might use depending on the context, in this case the pattern low-high-high or high-low-low is widely detected as relevant and used as such for mapping out potential forces and support/resistance zones. As you can see there is a relevant potential support zone validated by both the white curve and the blue curve which overlap further in time. There will be no surprises if the these levels keep holding the price for a while. The yellow one is the weakest one in my opinion, because of the peculiar case on natural gas that doesn't provide much options for such support/resistance lines, because of the X high that was created in a strong but weird position relative to past highs and lows. Meaning that if the yellow is broken on the up, it might not even matter in the future because a different setup might unfold, creating a totally different type of line in any type of pattern regarding previous highs and lows. What I like about these lines is that the relevant ones tend to provide clear cut cases of rebounds (example in the white dot), retests after break (green dot), or even pure power breaks with no comebacks (yellow dot). The scenarios I find important in this picture are the following: - the obvious potential rebound from the white and blue - the less obvious but very important break on the downside of the white and blue which has a higher chance of a retest because of the significance of these lines (these retests tend to happen for these long lasting lines with many data points) - supposing the yellow line does hold, or if another similar resistance line appears after another high lower than X, and supposing the white is finally penetrated, we enter the C zone which I believe has a decent probability for action inside it. I find the B zone less likely to be relevant as it implies the breaking of the white which should lead to a more bearish or consolidation mood rather that another power bullish move. I decided to post this snapshot here with these lines because as you can see the price has provided decent relevant lines in the recent past with the greens and blue, while in the current present case, these lines are almost non existent because of the position of the X high relative to the previous highs and lows. My guess is that a careful analysis of the reaction of the market to these lines could give us clues of what the sentiment in the market is, shifting from the bullish mood to a more cautious neutral or indecision mood with the break of the white and blue.
CITYINDEX:NATURALGASCFD
by nen
5
Natural Gas Price: Bullish Trend WeakensNatural Gas Price: Bullish Trend Weakens Forecasts of a hotter summer, published during April and May, led to a sustained bullish trend in the natural gas market, as this commodity is heavily used for air conditioning. Specifically: → The XNG/USD chart indicates that from 1st April to today, the price of natural gas has increased by more than 55%. → According to Bloomberg, there is a 61% chance that 2024 will be the hottest year on record, surpassing 2023. → Natural gas supplies may be unstable due to an unforeseen maintenance shutdown at the Freeport plant. According to the technical analysis of the 4-hour XNG/USD chart: → The price of natural gas has formed an ascending channel (shown in blue). → On 23rd May, the price reached a 2024 high around the 3.160 level, breaking the upper boundary and entering the overbought zone on the RSI indicator. → On 11th June, this high was marginally exceeded, but the price then turned down, forming a false bullish breakout pattern. Thus, the 3.160 level appears to adequately factor in the risks of an extremely hot summer. Therefore, the bullish trend weakens as it approaches this level. Meanwhile, bears are becoming more active, indicated by: → The price of natural gas twice breaking below the green lines of intermediate upward trends. → The price broke below the median line of the blue channel (shown by the arrow). → This week, the psychological level of 3.000 acted as resistance. It is possible that the bears could drive the price down to the lower boundary of the blue channel. Start trading commodity CFDs with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:XNGUSD
by FXOpen
1
Natural Gas: A Possible Bearish ScenarioNatural Gas: A Possible Bearish Scenario Requires more confirmation for NG to move down. However, considering how NG is developing the chances are that we can see this type of channel pattern taking shape soon. If NG doesn't make a new high above 3 then it should continue with the bearish scenario I draw in the chart. You may find more details in the chart! Thank you and Good Luck! ❤️PS: Please support with a like or comment if you find this analysis useful for your trading day❤️
CAPITALCOM:NATURALGASShort
by KlejdiCuni
3
US Natural Gas (XNGUSD)A bearish divergence appeared on daily time frame seems the prices may drop in the coming days with the following reasons: Global Economic Slowdown: A slowdown in global economic activity, particularly in major gas-consuming regions like China, could reduce demand for natural gas and weigh on prices. Alternative Energy Sources: An increase in the use of alternative energy sources like solar or wind power could reduce reliance on natural gas and put downward pressure on prices. Lets monitor.
FXOPEN:XNGUSDShort
by abidhaider
Are we thinking of Fundamental Analysis enough?Norway's gas exports to Europe fell sharply on Monday as a shutdown of the offshore Sleipner hub halted operations at the Nyhamna onshore processing plant, pipeline operator Gassco said, lifting European prices to their highest level this year. The outage was caused by a crack discovered in a two-inch pipeline onboard Norway's offshore Sleipner Riser platform, the company said. It was not yet known how long this will take to repair, but the situation is not considered dangerous, it added.
AFTERPRIME:XNGUSD
by liquidity_trading_
3
NATGAS +30%Natural gas is likely to remain a useful resource in the future for several reasons: Abundant and Accessible: Natural gas reserves are abundant and widely distributed across the globe. This accessibility ensures a stable and consistent energy supply, reducing dependence on specific regions or nations for energy resources. Cleaner Energy Source: Compared to coal and oil, natural gas is a cleaner-burning fossil fuel. It emits fewer greenhouse gases and pollutants when burned, making it an attractive transitional fuel as society seeks to reduce its carbon footprint and combat climate change. Versatile Energy Applications: Natural gas is versatile and can be used for various applications, including electricity generation, heating, cooling, and transportation. Its versatility allows for its integration into different sectors of the economy, reducing reliance on more carbon-intensive fuels. Reliable Energy Source: Natural gas power plants are highly reliable and can quickly respond to changes in energy demand. This flexibility makes natural gas a valuable resource for balancing intermittent renewable energy sources like wind and solar, ensuring grid stability. Economic Benefits: The natural gas industry provides economic benefits through job creation, revenue generation, and energy security. The development of natural gas infrastructure can boost local economies and reduce energy import dependencies, contributing to energy self-sufficiency.
PEPPERSTONE:NATGASLong
by MiguelFTCurado
5
U.S. NATURAL GAS (NGAS) UPTRENDING AGAIN?OWN OPINIONS. NOT FINANCIAL ADVICE US NGAS has broken short term resistances. If the key longterm trendline is finally broken, it would be uptrending again. NGAS trends in cycles, which means it's mean reversing, so after touching key supports in the 1.60$ area, it's now reversing to the long term means. Currently, it has broken the 200 day SMA, with a clean backtest and rebound. This price level also serves as a trigger for CTA buying. As for Elliott waves, we would be starting the 5th wave with a price target of 3.28$/3.55$. That's where there's a confluence of prior relevant highs (breaking above would be very bullish), the 2STD from the YTD AVWAP, and the market maker's short/long flip pivot point
PEPPERSTONE:NATGASLong
by j_arrieta
Natural Gas: The Golden OpportunityNatural gas has seen a nice rejection off of 3.19. A double top on nat gas is observed, does this mean we go lower? In the near term perhaps some more consolidation is needed but the trend is setting up for the infamous golden cross. If we get a bullish cross of the 50MA & 200MA this is a likely long term trend signal. This signals higher probability of a bullish uptrend. As we approach the elections, a potential trump win could influence the price.
CAPITALCOM:NATURALGAS
by Trading-Capital
Natural Gas Prices Poised for New 2024 HighsAfter a poor start to the year, Natural Gas prices have surged in the current quarter, largely due to stronger fundamentals. Extending the advance this week, the commodity looks poised to set new 2024 highs (3.397), but it may be early to talk about further gains. Key drillers have lowered their 2024 output guidance, while demand is expected to accelerate substantially, largely due to Asian industrial use. Adding to the optimistic outlook, the World Bank this week raised its growth forecast for the US and China and India, while the Europe exited its brief recession and the ECB slashed interest rates this month. On the other hand, supply is expected to expand this year and producers could boost their activity as price rise. European countries have agreed to keep consumption low, while historically warm weather poses another threat to demand optimism. Natural gas is also used for electricity generation though, which can be a tailwind in the summer months. On the technical front, the RSI has not followed prices higher, in a divergence that can limit the upside and fuel a pullback towards the EMA200 (black line). Daily closes below it would pause the bullish bias, but that would need strong catalyst. Stratos Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Stratos Europe Ltd (trading as “FXCM” or “FXCM EU”), previously FXCM EU Ltd (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Stratos Trading Pty. Limited (www.fxcm.com): Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763). Please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com Stratos Global LLC (www.fxcm.com): Losses can exceed deposits. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this video are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed via FXCM`s website: Stratos Markets Limited clients please see: www.fxcm.com Stratos Europe Ltd clients please see: www.fxcm.com Stratos Trading Pty. Limited clients please see: www.fxcm.com Stratos Global LLC clients please see: www.fxcm.com Past Performance is not an indicator of future results.
FX:NGASLong
by FXCM
NATGAS - Time for a pullback? There is a high possibility we are going down on the GAS Technicals 1. We closed on a doji on the weekly 2. We have been pumping strong lately, and the charts are screaming for a pullback 3. We came to a key .618 FIB retracement level 4. I see a zone here which can act as a major resistance. Trade Looking for a position for a sell this week!. Great trading all of you & remember to always trade with caution and a plan :-) Greetingz, Simba Trades
PEPPERSTONE:NATGASShort
by Simba_Trading
4