Natural gas markets gapped a little bit lower during the trading session on Monday at the open, but we have turned around to show signs of resiliency. To me, this means that we are going anywhere longer term, and we are probably going to continue to bounce around in the overall consolidated area. The $2.50 level underneath is massive support, just as the $3.00 level above is massive resistance. Looking at this chart, I think this is where we will spend the majority of the next several months as the United States starts to warm up again.
NATGAS Video 26.03.19
Beyond that, we have some concerns about global demand when it comes to energy overall. Because of that, it’s likely that we will continue to see energy markets slump a bit, at least as far as industrial demand is concerned. If that’s going to continue to be the case, it’s very difficult to imagine a significant amount of reason to put on a longer-term trade. I think we can simply benefit from going back and forth between these two levels until it’s proven to be otherwise.
If we do break above the $3.00 level, I see a significant amount of support at the $3.25 level above. To the downside, if we were to break down below the $2.50 level, it’s hard to tell where we would end up because it is such a significant floor in the market on longer-term charts.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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