The natural gas market is currently experiencing summertime trading conditions, characterized by tight ranges and erratic price movements. Demand for natural gas typically diminishes during the summer months as heating demand recedes. It is also essential to consider the role of industrial demand in driving pricing during this period. Consequently, noise and sideways trading patterns prevail.
Given the current dynamics, the market is essentially range-bound. The $2.00 level is a substantial support zone, while the $3.00 level represents a significant resistance level. The 50-Day EMA aligns with this range, further influencing price action. Until the approach of winter, when demand typically increases, trading is expected to remain back and forth within this range.
In the end, the natural gas market exhibited minimal activity during Monday's trading session due to the Juneteenth holiday in the United States. Summer trading conditions, characterized by tight ranges and erratic price movements, prevail. Demand for natural gas recedes during this period, and the role of industrial demand remains a consideration. The market is currently range-bound, with substantial support at the $2.00 level and significant resistance at $3.00.