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Natural Gas

Market Opportunities - 25/10/2021

25 October, 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 uptrend opportunity based On 1.00 Lot Calculation:

  • ONGOING: Energy Crisis in Europe and the UK as Nat Gas continued to hit fresh all-time high. There are reports of an energy crisis in China, too. India is also expected to face electricity power outages as their coal inventories run low too: Europe is facing an extreme squeeze for energy supplies, with gas and power prices breaking records day after day. The continent is running out of time to refill storage facilities before the start of the winter as flows from top suppliers Russia and Norway remain limited.
  • NEAR AND MID TERM WEAHTER EXPECTATIONS: Colder than usual temperatures are expected in some parts of the US between November 1 to 7. NEW YORK POST reported that the La Nina pattern could bring a cold snap with snowfalls to the US already in November. The colder than usual weather in the US could increase the natural gas demand, and therefore its prices could be expected to receive a boost.
  • CHINA TO INCREASE PURCHASES OF ENERGY PRODUCTS TO AVOID BIGGER ENERGY CRISIS: Bloomberg reports that China’s central government officials "ordered the country’s top state-owned energy companies to secure supplies for this winter at all costs." Therefore, the markets may expect China to be buying more natural gas going forward, which could have a positive impact on the natural gas prices.

Natural Gas, October 25, 2021
Current Price: 5.730

Natural Gas

Weekly

Trend direction

UP

Resistance 3

6.650

Resistance 2

6.450

Resistance 1

6.250

Support 1

5.250

Support 2

5.100

Support 3

4.900

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 $

9,200.00

7,200.00

5,200.00

-4,800.00

-6,300.00

-8,300.00

Profit or loss in €**

7,906.57

6,187.75

4,468.93

-4,125.16

-5,414.28

-7,133.10

Profit or loss in £**

6,665.22

5,216.26

3,767.30

-3,477.50

-4,564.23

-6,013.19

Profit or loss in C$**

11,349.49

8,882.21

6,414.93

-5,921.47

-7,771.93

-10,239.21

* 1.00 lot is equivalent of 10000 units
** Calculations for exchange rate used as of 08:50 (GMT+1) 10/25/2021
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 details

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