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Natural Gas

Market Opportunities - 12/03/2021

12 March, 2021

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. 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.

Natural Gas weekly downtrend opportunity based On 1.00 Lot Calculation:

  • US natural gas storage volumes declined less than the market expected for the second consecutive week. The U.S. Energy Information Administration on Thursday, March 11, reported a withdrawal of 52 Bcf from natural gas storage for the week ended March 5. Production increased by 6 Bcf/d according to the report, as South Central freeze-offs lifted and power outages returned after the February storm. Production’s rapid recovery has been the big surprise for the market.
  • Weather has proven generally mild during the current week and the outlook for the second half of March does not show much to support a bull case for coming weeks either. According to NatGasWeather for March 11 to March 17, most of the U.S. will be mild to warm.
  • The natural gas markets are going to continue to see a lot of pressure due to the fact that we are getting towards a warmer time of year, and as the northern hemisphere heads toward spring.

Natural Gas, March 12, 2021
Current Price: 2.65

NATURAL GAS

Weekly

Trend direction

DOWN

Resistance 3

3.04

Resistance 2

2.95

Resistance 1

2.86

Support 1

2.43

Support 2

2.34

Support 3

2.25

Example of calculation base on weekly trend direction for 1.00 Lot*

NATURAL GAS

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

-3,970.00

-2,990.00

-2,120.00

2,170.00

3,090.00

3,980.00

Profit or loss in €**

-3,331.35

-2,509.00

-1,778.96

1,820.91

2,592.91

3,339.74

Profit or loss in £**

-2,851.11

-2,147.31

-1,522.51

1,558.42

2,219.13

2,858.29

Profit or loss in C$**

-4,982.39

-3,752.48

-2,660.62

2,723.37

3,877.98

4,994.94

* 1.00 lot is equivalent of 10 000 units
** Calculations for exchange rate used as of 10:55 (GMT) 12/03/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more detail

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