Last Updated on May 21, 2021 by MoneyVisual
Many energy consumers, producers, marketers, traders, and investors know what a crude oil and natural gas price forecast is, and some study them regularly.
Anyone who’s dealing with energy commodities, such as natural gas, crude oil, and other petroleum products should be aware that in volatile energy markets it’s necessary to get to the bottom of what the charts say, gauge the direction & strength of the market, as well as identify where key support and resistance levels are.
In this write-up, we will analyze how technical analysis based crude oil and natural gas price forecastsmaybe useful and why should we use the services of a competent energy markets technical forecaster. In the end, we will also analyze how technical trading indicators and charts may help make informed decisions.
So, let’s begin with analyzing the usefulness of weekly energy forecasts, such as the ones published by Kase and Company, Inc.
Reveal Valuable Information
In the current technology-driven world, we can easily access lots of data. With a simple search on the internet for keywords like crude oil or natural gas forecast, we will reach hundreds of websites, where abundant data is available regarding price movements, fundamental factors, geopolitical influences, etc.
However, you may wonder if this data can really help in making informed decisions. Most reports won’t because they are just speculation regarding how current fundamentals and other external factors may affect prices in the long run. Most of the time these changes in price happen before the information is published for you to see.
It is here that price charts prove their worth. Charts help users gather valuable information because they simply reflect what the market knows about itself. In this manner, the charts help you in making accurate and timely decisions.
Are More Closer to Reality?
Although you may find many energy markets forecasters making predictions from time to time, they have no tools to gauge trend strength. Moreover, they cannot tell when prices will reach a defined target. This is since they don’t rely on technical analysis and technical indicators.
On the contrary, forecasts made using technical analysis of the historical market data, are more reliable because they are statistically driven. Hence, crude oil and natural gas forecasts based on technical analysis are good because they are accurate predictions, about where markets are headed, besides, provide a highly accurate strength of trend and direction.
Help Gauge Direction of the Market
Gauging the direction of the market is most important when it comes to trading. You can rely on a good energy price forecast made by an experienced technical forecaster, and learn about whether the market is bullish or bearish, or maybe a sideways corrective phase is in the offing.
Equipped with this valuable information, the market participants will be able to plan an effective trading and risk management strategy. Once you start studying the crude oil and natural gas forecasts based on technical analysis, you’ll be able to make sound trade and hedge decisions which are according to your objectives and risk appetite. Although it is difficult to gauge the market direction and strength of the trend, a technical analysis based forecast will make it easy.
Help Identify Support & Resistance Levels
As an individual trader or a company that has been trading natural gas and crude oil, you know how important it is for a trader to identify the key support and resistance levels. A comparison of these levels across several websites that provide this information can leave you confused.
Your decisions should not be taken based on this dicey information. However, you can use the service of a good technical forecaster that can provide you highly accurate data to help identify key support and resistance levels, and, in turn, help mitigate risk and let profits run.
Usefulness of Technical Trading Indicators
Although there’s no one technique that one can be used to accurately predict the energy market price movements, a technical indicators package, like that offered by Kase and Compnay, Inc., may help in that regard. There are several ways the technical indicators are found useful.
Provide Clear Outlooks of the Market
The technical indicators use pre-defined mathematical formulas to help provide clear outlooks on everything happening in the market. Historical prices, the performance of the security, trend direction and strength all that is available for you to see. You can use these indicators to help time entries, place stops, and exit trades in a timely and effective manner.
Help Make Informed Decisions
Technical indicators don’t take into account emotions. Decisions based on market mood often lead to making flawed choices. Any market participant should arrive at decisions whether to buy or sell, realistically rather than emotionally. Technical trading indicators are based on real data so they are more accurate and help you make informed decisions.
Help Make Faster Decisions
The more you use technical trading indicators and study the charts the more accurate you’ll become in predicting the trends in the market. Thus, you’ll make faster decisions. Moreover, you’ll be able to exploit the movements in the market and maximize your profits while minimizing losses.
Technical analysis based forecasts for the natural gas price and crude oil price enable making timely trading decisions, and in turn, help mitigate risk. Therefore, you can rely on weekly energy market forecasts that use technical analysis forecasting methods.