What to expect from natural gas?

29 march 2022 139
Elena_Berseneva
Elena_Berseneva

Listed among the best MarketCheese authors
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The price for natural gas is steadily increasing within the current geopolitical instability and growing economic uncertainty.

 

Since February 24, the day of the military operation start in Ukraine, natural gas has added almost 20% of its price following the disperse trading yesterday.

 

What will happen after March 31 when the G7 countries refuse to pay in rubles for Russian gas under the conditions of increasing sanctions pressure on a global scale? And as a result, gas supplies to Europe and other countries within the G7 can probably be stopped as Russia will definitely not supply blue flame gas for free, won’t it?

 

The answer is quite obvious and logical. The gas price under the conditions of a greatly increased deficit will sharply rise.


Refusal to pay in the Russian currency will lead to very unfavorable consequences for the Western countries’ economy in the form of shutdown and closure of production, food crisis, and rising food prices as fertilizers are also supplied by Russia, and the like.

 

We will find out soon this difficult situation to be resolved, in just two or three days after March 31.

 

 

 

Technically and graphically, the boundary of the ascending triangle in the form of the resistance level of 5.4 has already been broken down which implies the growing trend’s continuation.

 

The triangle has been forming since the end of January of this year, and finally, its upper boundary has been broken.

 

It is possible that the 5.4 level will still be tested and tested for strength, but today there are more fundamental prerequisites for an increase in the cost of gas than for its decrease.

 

In this case, the Fibonacci levels act as a good guideline for the target growth levels of natural gas.




The following trading options are possible:

 

1. A buy of gas from the market at the current price with target levels: Take Profit 1 = 5.85 and Take Profit 2 = 6.3.

Stop Loss is set below 5.25. Then, Trailing Stop is optional.

 

2. BuyLimit is in the area of 5.4.

Take Profit 1 = 5.85 and Take Profit 2 = 6.3.

Stop Loss is set below 5.25. Then, Trailing Stop is optional.

 

 

 

 

Warning!

 

Trading on financial markets involves a high level of risk and may lead to the loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds.

Elena_Berseneva
Elena_Berseneva

Listed among the best MarketCheese authors
1st in the segments "Indices" and "Metals"
2nd in the segments "Currencies" and "US stocks"
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