Natural gas markets have drifted a little bit lower during the trading session on Friday, as we continue to dance around the 50 day EMA. Natural gas markets of course have been a bit soft, but we are starting to see signs of support in general. The market is trying to bottom due to the fact that we have seen a lot of potential bankruptcies coming down the road in the United States, and as a result it is highly likely that the supply will dwindle a bit. However, we have also been seen a lot of cargo shipments canceled lately, and that suggests that perhaps the market still has a lot of work to do before getting rid of the oversupply situation.
NATGAS Video 25.05.20
In looking at the chart, the $1.80 level looks to be rather supportive, so if we were to break down below there it is likely that we will go looking towards the bottom of the candle from a couple of weeks ago that opens up the door to the $1.70 level. On the other hand, if we break above the top of the candlestick from the Friday session it opens up the possibility of a move towards the $2.00 level, an area that is obvious as a large, round, psychologically significant figure. Furthermore, the 200 day EMA above is at the $2.09 level, so it is also possible that the market is going to be trapped between these two moving averages. Ultimately, the market is likely to continue to see a lot of choppiness.
This article was originally posted on FX Empire
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