Natural gas markets continue to show a lot of volatility, and of course negativity as we have gapped lower to kick off the trading session and week. Ultimately, the $2.20 level continues to be an area of contention, and the fact that we gapped lower and broke below the bottom of the candle stick from the Friday session turns that Friday candlestick into a “hanging man.” The “hanging man” is a negative candle stick, so I think given enough time we are more than likely going to continue to see the market going lower.
NATGAS Video 20.08.19
Above, we have the 50 day EMA which should continue to attract a lot of attention, and of course we have the downtrend line above that level should also cause a significant amount of selling pressure. Ultimately, I think that the market is going to continue to break down from that area if we do try to rally, because quite frankly we are not in the right time of the year to see a lot of bullish pressure. I think that we will continue to see negativity, but obviously it’s going to be very noisy.
That being said, if we were to break above the $2.50 level, then it would change everything but we are still very much in the downtrend so I’m looking for opportunities to short this market on signs of exhaustion after a short-term rally. At this point, the $2.00 level will of course attract attention, and I think that a lot of traders are trying to get down there.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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