Natural gas markets have gapped higher to kick off the trading session on Wednesday, then turned around to fill the gap before rallying yet again. By doing so, the market is likely to continue to see upward pressure, but it is worth noting that we failed a little bit at the $4.00 level. That is an area that obviously will attract a lot of attention, but when you look at the longer-term technical analysis, it does suggest that we go higher than that.
NATGAS Video 22.07.21
The natural gas markets have gotten a bit of a boost during the course of the trading session on Wednesday as we continue to see the major heat wave in the United States drive up demand. Furthermore, there has been a continued push into commodities in general, so when you look at the natural gas market it is very similar to other commodities. That being said, we are at the wrong time of year to see a massive bullish run in natural gas under normal circumstances, so I believe that if the commodity markets start to fall apart, the natural gas market might be the place you start to see selling pressure.
Looking at the technical analysis, we have recently broken out of a consolidation area that measures for a move to the $4.00 level. However, there is also a bullish flag that could be made of that pattern, opening up a move to the $4.40 level after that. Beyond all of that, we also have the previous consolidation area from $2.40 to the reading of $3.40, which again measures for a move to the $4.40 level.
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This article was originally posted on FX Empire