One of the things I pay the most attention to in the futures markets is order flow. One of the easiest way to do that is to watch for large orders and see whether they are being filled on the ask or the offer. During the trading session on Monday, massive amounts of buy orders were triggered on the ask, which is generally a bullish sign. That being said though, we are most certainly in a downtrend so it is probably only a matter of time before the sellers come back to start to push lower. Perhaps part of this is due to the recent heatwave in the United States and a thought that the supply of natural gas must be dwindling.
NATGAS Video 23.07.19
While this might be true from the short term, the reality is that we are far oversupplied in natural gas so I look at this as an opportunity to start selling from higher levels. Of particular interest would be the $2.40 level as the 50 day EMA is crossing that level right now. Any signs of exhaustion should be a nice selling opportunity, especially near a round figure that is based upon a $0.10 level as the market tends to pay the most attention to those levels. All of that being said, simply waiting for exhaustion above is probably the best way going forward. I believe that given enough time the massive oversupply of natural gas in the United States and Canada will overwhelm this market. Simple patience might be what you need.
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This article was originally posted on FX Empire
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