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Natural Gas (NGS) / US DollarNatural Gas (NGS) / US DollarNatural Gas (NGS) / US Dollar

Natural Gas (NGS) / US Dollar

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NATURAL GAS FUTURE - LONG INVESTMENTStock traders may advise shareholders and help manage portfolios. Traders engage in buying and selling bonds, stocks, futures and shares in hedge funds. A stock trader also conducts extensive research and observation of how financial markets perform. This is accomplished through economic and microeconomic study; consequently, more advanced stock traders will delve into macroeconomics and industry specific technical analysis to track asset or corporate performance. Other duties of a stock trader include comparison of financial analysis to current and future regulation of his or her occupation.
CAPITALCOM:NATURALGASLong
by GOLDBERG_INVESTMENT
How To Trade Natural Gas: Tools and Approaches How To Trade Natural Gas: Tools and Approaches Natural gas trading presents unique opportunities due to its critical role in the global energy market and its inherent volatility. This article delves into the various strategies and tools traders can use to navigate natural gas CFDs, from fundamental and technical analysis to understanding market dynamics. Overview of the Natural Gas Market Made up of primarily methane, natural gas is a key fossil fuel that’s grown in use over the past two decades. It forms deep beneath the Earth's surface from the remains of plants and animals buried under layers of sediment and subjected to intense heat and pressure over millions of years. It’s typically found near oil reserves and must be extracted and processed before it can be used. Natural gas is a relatively clean-burning energy source, at least compared to coal or oil. It plays a crucial role in the global energy sector, accounting for about 23% of energy consumption worldwide in 2023, according to Statista, and 33% of US energy consumption in 2022, according to the EIA. It’s also highly versatile, used across various sectors. For instance, in 2022, natural gas provided approximately 38% of the energy consumed by the US electric power sector (EIA), making it a primary source for electricity generation. The industrial sector also accounted for around 32% of natural gas consumption, using it as both a fuel and a raw material for producing chemicals, fertilisers, and hydrogen. Natural gas is also essential for residential and commercial heating, particularly in colder regions. Moreover, the transportation sector adopts natural gas, particularly in the form of compressed natural gas (CNG) and liquefied natural gas (LNG), to reduce emissions and costs. Market Structure and Participants The natural gas market consists of various key players, including producers, consumers, and traders. Major producing countries include the United States, Russia, and Qatar. According to the EIA, the US led the world in LNG exports in 2023, averaging 11.9 billion cubic feet per day​. Natural gas production involves extraction, processing, and transportation to end-users via extensive pipeline networks and LNG shipping routes. The supply chain for natural gas begins with extraction from reservoirs, followed by processing to remove impurities and liquids. The processed gas is then transported through pipelines or converted into LNG for shipping to international markets. Once delivered, it is distributed to consumers for the various applications described. Key participants in the natural gas market include multinational energy companies (e.g., ExxonMobil, Gazprom), regional producers, and numerous traders who facilitate the buying and selling of natural gas on commodity exchanges. These players operate within a complex regulatory framework that varies by country, influencing production levels, prices, and market dynamics​. Key Factors Influencing Natural Gas Prices Let’s now take a closer look at the factors driving natural gas prices. Supply and Demand Dynamics The balance of supply and demand is a fundamental driver of natural gas prices. On the supply side, production levels play a crucial role. As with many commodities, higher production, in this case driven by advancements in extraction technologies like hydraulic fracturing, typically leads to lower prices. Storage levels also impact prices; high storage volumes, or inventories, can cushion against supply disruptions, keeping prices relatively stable. Conversely, low storage levels can lead to price spikes. Consumption patterns are equally important; industrial usage, residential heating, and electricity generation are primary demand drivers. Additionally, the cost of extraction, including technological and labour costs, feeds into the overall pricing of natural gas​. Geopolitical Events and Policies Geopolitical stability and regulatory policies significantly affect natural gas prices. For example, the substantial 2022 reduction of Russian gas exports to Europe caused record price increases due to severe supply constraints​​. Trade policies, such as tariffs and export restrictions, also impact prices. The US has seen a notable rise in LNG exports in recent years and become a major supplier of natural gas to Europe. Recent policy decisions aimed at energy security and diversification, especially in Europe and Asia, have led to increased demand for non-Russian natural gas, affecting global prices​. Weather Patterns and Seasonal Variations Weather significantly affects natural gas demand and supply. Cold winters increase demand for heating, often leading to higher prices, while mild winters can reduce demand and depress prices. Similarly, hot summers boost demand for electricity to power air conditioning, influencing prices. Natural disasters like hurricanes can disrupt production and transportation infrastructure, causing supply shortages and price spikes​. Natural Gas Trading Instruments When it comes to actually trading gas, there are a few instruments traders use. Contracts for Difference (CFDs) CFDs are a popular instrument for trading natural gas due to their flexibility and leverage. A CFD is a derivative that allows traders to speculate on the price movements of natural gas without owning the physical commodity. Traders can go long (buy) if they anticipate price increases or short (sell) if they expect prices to fall. They are the most popular choice for anyone looking to be a natural gas trader. The CFD natural gas symbol is XNGUSD. You can trade US natural gas CFDs in FXOpen’s TickTrader trading platform. One of the main advantages of CFDs is leverage, which allows traders to control a large position with a relatively small amount of capital, potentially enhancing returns but also increasing risk​​. Additionally, CFDs offer access to the natural gas market with lower upfront costs and the convenience of trading on various platforms without the need for storage or delivery logistics​. Futures Contracts Natural gas futures are standardised contracts traded on exchanges such as the New York Mercantile Exchange (NYMEX). These contracts obligate the buyer to purchase a specific amount of natural gas at a predetermined price on a future date. Futures are widely used by producers and consumers to hedge against price volatility and by speculators seeking to take advantage of price movements​. While natural gas futures are suitable for some traders, their complexity and potential obligation to take delivery may deter those simply looking to speculate on the market’s price movements. Options Contracts Options on natural gas futures provide the right, but not the obligation, to buy or sell futures contracts at a set price before the option's expiration. These can be used to hedge positions in the natural gas market or to speculate with limited risk. Options strategies can range from simple calls and puts to more complex combinations like spreads and straddles, but are also highly complicated and require a strong understanding of how options work. Exchange-Traded Funds (ETFs) ETFs allow investors to gain exposure to natural gas prices without trading futures or options directly. These funds track the price of natural gas or the performance of natural gas companies. ETFs are generally used by investors to diversify their portfolios and participate in the natural gas market with lower complexity compared to futures and options​. What to Know Before Trading Natural Gas Before trading natural gas, it’s important to consider the following key aspects: - Trading Units: Natural gas is typically traded in units of million British thermal units (MMBtu). - Trading Hours: Natural gas trading hours are specific, with futures trading on the NYMEX from 6:00 PM to 5:00 PM ET, Sunday through Friday. Ensure you know the trading schedule of your platform before getting started. Both CFD US natural gas and forex pairs can be traded on FXOpen’s TickTrader platform on a 24/5 basis. - Volatility: Natural gas prices are highly volatile, often more so than currency pairs and many other commodities. Be prepared for significant price swings. - Spreads: The relatively wide spread of natural gas, or the difference between the bid and ask price, can lead to higher trading costs. - Leverage and Margin: Trading natural gas, especially through CFDs, involves leverage, which can amplify both gains and losses. Ensure you understand margin requirements and risk management strategies​ before getting started. Key Strategies for Trading Natural Gas CFDs Trading natural gas CFDs can be a lucrative endeavour, but it requires a solid understanding of the market and effective natural gas trading strategies. Fundamental Analysis Fundamental analysis focuses on the economic factors that influence natural gas prices. Key elements include supply and demand dynamics, inventory levels, and macroeconomic indicators. For instance, the US Energy Information Administration (EIA) releases weekly reports on natural gas storage levels, which provide insights into supply and demand balance. High inventory levels generally indicate lower prices, while low inventory can signal higher prices due to anticipated supply constraints​. Economic growth and industrial demand also play significant roles; as industries expand, natural gas consumption typically rises, driving prices higher​. Moreover, expectations of colder-than-normal winters increase demand for heating, driving prices up, while mild winters can suppress demand. Lastly, geopolitical events, such as conflicts in gas-producing regions, can disrupt supply chains and cause price volatility. Technical Analysis While fundamental analysis helps determine the market outlook, technical analysis is often used by traders to find entry and exit points. Key principles like support and resistance levels, trend identification, and breakout strategies still apply in natural gas markets. However, price volatility may make some established technical strategies less effective. It’s key to test different indicators and patterns to find what works best. Momentum indicators, such as the Stochastic indicator or Moving Average Convergence Divergence (MACD); trend tools, like the Average Directional Index (ADX) and moving averages; and volume-based tools, such as the VWAP and Fixed Range Volume Profile (FRVP), can all assist in analysing and trading natural gas CFDs. In practice, a fundamental-first approach may look like a trader monitoring inventory reports, economic growth, and weather patterns to gain an idea of the market’s direction. They might then use technical analysis signals to time trades and find precise entry and exit points. Sentiment and Positioning Analysis Sentiment analysis involves gauging the overall market mood, which can significantly influence natural gas prices. While there is no single unified measure of natural gas trading sentiment, tools such as Investing.com’s Natural Gas Scoreboard can offer a quick look at how traders view the market. Market positioning can be identified using the Commitment of Traders (COT) report, which shows the positions of different market participants in natural gas futures contracts. Generally speaking, bullish sentiment and positioning might drive prices up, while the opposite sentiment can push prices down. However, traders should also note that sentiment and positioning can indicate overreactions, creating opportunities for contrarian strategies. Tools for Trading Natural Gas There are several tools that traders can use to analyse and trade natural gas. For instance: 1. Trading Platforms - TradingView: Offers comprehensive charting tools and real-time market data. - MetaTrader 4/5: Provides advanced trading and analysis tools widely used by traders. - TickTrader: FXOpen’s own TickTrader features an advanced charting platform with more than 1,200 trading tools. You can trade at any of these platforms with FXOpen. 2. Inventory and Storage Reports - EIA's Natural Gas Weekly Update: Offers comprehensive analysis of markets, including supply, demand, and price trends. - EIA’s Natural Gas Weekly Storage Report: Features a snapshot of the US supply of natural gas across different regions. 3. Sentiment and Positioning - CFTC's Commitments of Traders (COT) Report: Provides insights into market positioning by different trader categories. - Investing.com’s Natural Gas Scoreboard: Indicates the bullish or bearish sentiment surrounding natural gas. 4. Market Reports - American Gas Association (AGA) Reports: Provides detailed analysis and statistics on markets. 5. Weather Forecasts - AccuWeather or Weather Underground: Accurate weather forecasts are essential as they significantly impact natural gas demand. - National Oceanic and Atmospheric Administration (NOAA): Offers long-term climate predictions. 6. News Websites - Bloomberg - Reuters - MarketWatch - CNBC 7. News Aggregators and Economic Calendars - Energy EXCH - FinancialJuice The Bottom Line Trading natural gas can be an interesting endeavour with the right strategies and tools. By understanding market dynamics and leveraging advanced platforms, traders can navigate this volatile market effectively. Open an FXOpen account to access a robust trading platform and start trading natural gas CFDs today, maximising your trading potential with professional tools and support. FAQs Where Can I Trade Natural Gas? You can trade natural gas through brokers that offer CFDs, such as FXOpen. These platforms allow you to speculate on live prices without owning the physical commodity. FXOpen provides a natural gas trading platform via TickTrader, known for its user-friendly interface and access to a wide range of trading tools and resources​. How to Trade Natural Gas? Trading natural gas can be done through various methods, including CFDs, futures, options, and ETFs. CFDs are most popular for retail traders due to their lower capital requirements and leverage options. How to Buy Natural Gas Futures? To buy natural gas futures, you need to open an account with a broker that offers futures trading, such as CME Group. After funding your account, you can trade futures contracts, which are standardised agreements to buy or sell natural gas at a specific price on a future date. 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
9
Natural Gas Wave Analysis 20 November 2024 - Natural gas broke the multi-month resistance level 3.150 - Likely to rise to resistance level 3.750 Natural gas continues to rise strongly after the earlier breakout of the key multi-month resistance level 3.150, reversing the price from May. The breakout of the resistance level 3.150 accelerated the active impulse waves 3 and (3) – both of which belong to the long-term upward impulse wave 3 from August. Given the clear daily uptrend, natural gas can be expected to rise to the next resistance level 3.750, which is the target price for the completion of the active wave (3).
FX_IDC:USDNTGLong
by FxProGlobal
potential bullish breakout setup for Natural GasPrice Action Patterns: The price appears to have been forming a rounded bottom, signaling possible accumulation. The recent price action has moved upwards towards a significant horizontal resistance at $3.65. This is the level to break for confirmation of a bullish breakout. Waves: The move resembles a Wave 1-2 pattern, with Wave 3 (impulsive wave) likely beginning above the breakout level. Order Buy Stop Entry Price: $3.70 (just above resistance for confirmation) Take Profit (TP): $5.30 (first major resistance zone) Stop Loss (SL): $3.20 (below recent swing low) Confidence Level: 75%
CAPITALCOM:NATURALGASLong
by Mad-Hatter
2
Natural Gas Prices Reach Yearly HighsNatural Gas Prices Reach Yearly Highs According to the XNG/USD chart, natural gas prices have risen by approximately 13% since early November and this week hit a new 2024 high. Factors Driving Bullish Sentiment (as reported by Reuters): → A sharp increase in global gas prices. → Forecasts of colder weather and higher heating demand in the United States. Will Natural Gas Prices Continue to Rise? From a fundamental perspective, the Energy Information Administration (EIA) forecast on 13 November predicts natural gas prices could peak in January 2025. From a technical analysis standpoint of the XNG/USD chart, the $3.200 level is a critical resistance, having previously triggered price reversals in October (B) and June (not shown on the chart). Price movements since early August have formed a trend channel (shown in blue). Bullish Arguments: → The $2.7 level serves as support, aligned with Fibonacci retracement levels, as the B→C pullback is at 50% of the A→B rise. → The $2.93 level has flipped from resistance to support (indicated by arrows). Bearish Arguments: → Prices reversed sharply downward earlier this week from the $3.200 level, showing seller activity. → Reports indicate utilities are injecting gas into storage at faster-than-expected rates, suggesting stockpiles could meet increased cold-weather demand. Bulls may attempt to keep prices within the blue channel and make further attempts to breach the $3.200 level. However, XNG/USD signals show that bears are ready to push back. 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
2
Natural Gas Daily - Reversal symmetrical triangleNatural Gas is currently forming a symmetrical triangle pattern, and I’m watching for an upward breakout confirmation. However, I’m cautious, as previous rallies in gas prices coincided with major events like COVID-19 and Russia’s invasion of Ukraine. Could we be on the brink of another significant catalyst? The source of the picture in my chart is: www.forexpeacearmy.com Note: I am sharing my thought process on these market moves and adjust my analysis as the market evolves. This is not meant to be followed by others, as I am prone to mistakes like anyone else. Instead, I welcome feedback that can help me question and refine my analysis.
PEPPERSTONE:NATGASLong
by kr_ta
1-hr NGAS: Upward Momentum Extends HigherNatural Gas (NGAS) prices are showing strong upward momentum today, following a solid bounce off the $2.82 support level observed yesterday. The asset has gained traction, with buyers taking clear control, as indicated by a bullish crossover where the 20-day moving average (MA) has risen above the 60-day MA. This technical signal suggests increasing buying pressure and could indicate a potential shift towards a stronger uptrend. However, the $3.00 level is a critical psychological and resistance zone, as a Multiple Top chart pattern has formed in this area. This setup might trigger short-term profit-taking, leading to a potential pullback. If a correction does occur, prices may retrace to around $2.87, aligning with the 38% Fibonacci retracement level. This pullback could serve as an attractive entry point for traders looking to capitalize on the prevailing uptrend, offering a more favorable buying opportunity before the next potential rally. In the bigger picture, as long as support holds, the broader bullish outlook remains intact for NGAS.
FX:NGASLong
by Trendsharks
1-hr NGAS: Double Top Chart Pattern After reaching a significant resistance level and forming a Double Top Chart Pattern at $3.00, Natural Gas (NGAS) has begun a notable decline, signaling a potential shift in market sentiment. Currently, a bearish "Death Cross" formation is on the horizon, as the 20-day moving average (MA) appears poised to cross below the 60-day MA. This technical event is widely considered a strong bearish indicator, suggesting increased selling pressure ahead. Furthermore, while the Relative Strength Index (RSI) remains low, it has yet to dip into oversold territory, implying there is still room for additional downward movement before exhaustion sets in. Traders and analysts are eyeing key Fibonacci retracement levels for possible support zones. The first target on the downside is around the $2.80 mark, corresponding to the 50% Fibonacci retracement level, which often serves as a critical pivot point. Should the selling pressure persist, a deeper decline towards the $2.77 level is possible, aligning with the 61.8% Fibonacci retracement, a classic area where prices might attempt to find some stability. Overall, the technical setup points to continued bearish momentum unless strong buying interest emerges.
FX:NGASShort
by Trendsharks
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FOREXCOM:NATURALGASLong
by Thief_Trader
1
Natural Gas: Follow The Price BreakoutNatural Gas: Follow The Price Breakout In recent days, natural gas (NG) has continued to develop a contracting triangle, which, according to our chart, typically suggests an upward price movement. However, given the unclear fundamental perspective, we need to consider both trading scenarios. Technical Analysis: If the price breaks through 2.8920, a bullish movement will be confirmed, and the price may rise further to 3.00. If the price breaks below 2.8000, a possible bearish wave may begin, with NG potentially moving down to 2.6300, as shown on 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:NATURALGAS
by KlejdiCuni
3
Natural Gas Bottomed Near 2.63 and May Resume Bullish TrendNatural Gas Bottomed Near 2.63 and May Resume Bullish Trend Natural Gas bottomed near 2.63 and confirmed a bullish movement by completing a bullish wedge pattern. The daily candles over the past two days indicate strong bullish volume. This upward movement is also supported by ongoing conflict in the Middle East, the future developments of which remain unclear. After any small pause, NG may resume its upward movement. 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:NATURALGASLong
by KlejdiCuni
1
$NATURALGAS near strong resistance but not entirely exhaustedCAPITALCOM:NATURALGAS is entering in strong seller territory again and it's going to be tough to crack the resistance above where we have 200 ema on the weekly chart with a total volume of approximately 513K orders of which sellers beat buyers by 39%. Right above that we have another 721K orders where sellers dominate by 70%. But contrary to last time where we visited this area (30th Sep) things me be a bit more promising from a technical perspective. On the weekly chart RSI and OBV are less overbought than the previous attempt and from the recent swing high (from previous week) they point upwards hinting at further momentum continuation with price sitting right above the 50 ema (weekly)with the 20 ema (weekly) about to crossover for yet another bullish sign. Lastly, we have price sitting above a support of 220K orders with buyers being 14% more than sellers (not a very strong support when considering the resistance right above us though). On the daily chart we have price above 20, 50 and 200 ema with RSI and OBV increasing sharply and not yet overbought or indicating any divergence (so far) which is promising for further uptrend. Price is about to penetrate the supply zone at 2.98-3.12 with about 14% more buyers than sellers. A volume based support is visible at 2.86-2.81 with the demand zone being way lower near summer lows. On the 4h chart RSI and OBV appear overbought, however no regular bearish divergence can be observed, indicating that the current trend strength remains unchanged (remember that markets can remain in overbought/oversold situations for an extended period of time - and a reversal is more likely to occur when they start becoming less and less overbought as price makes higher highs i.e regular bearish divergence). Recently we broke yet another resistance and price might return and retest this area near 2.99-2.91. A supply zone is visible at 3.12-3.19 hinting at the next possible resistance in the short term. Lastly, Elliot's 5wave model predicts that given the existing trend the next pivot point is near 3.37 before we see a substantial retracement at least on the 4h chart. Finally on the 1h chart we start observing signs of trend weakness with price making higher highs but at the same time RSI and OBV being less and less overbought and a reversal candlestick pattern being formed. Also from the same 5wave model we are theoretically at a pivot point, with an expected retracement until 2.57! The demand zone is observed at 2.94-2.97 and might act as a support in the future for further uptrend continuation. There are some problems with the above signs of weakness on the hourly though and the most important one is that all the divergences observed during last session occurred with suboptimal volume. This might be an attempt of manipulation of a fake breakdown or it can simply mean that people are simply collecting some of their earnings either as part of their usual risk management strategy or due to the fact that above (weekly chart) we face a very strong resistance from a technical perspective. To sump up, it is clear that we are headed towards a strong resistance in fact we are already in it for some of the charts: 3.03-3.25 (w), 2.99 - 3.14 (d), 3.11-3.18 (4h), 3.10 - 3.19 (1h). We have possible support based on volume at 2.59 (w), 2.86 (d), 2.97- 2.85 (4h) and 2.97-2.94 (1h). Trend is still strong on the w, d and 4h chart with signs of weakness observed on the 1h chart. Since we made almost 14% in a single week, some retracement would be reasonable but then again the market maker has his own reasoning. Given that personally I do not see bearish divergence occurring at 4h or above, I am leaning towards the assumption that any pullback we might see in the next week is likely to find support within the volume depicted in the 4h and 1h charts. Personally I will be looking to buy the dips near previous volumetric orderblocks if price action shows that they hold and price bounces up from there with bullish divergence.
CAPITALCOM:NATURALGASLong
by chriskokal1
2