Natural gas markets have rallied a bit during the trading session on Monday, showing signs of stability to start the week. This hasn’t necessarily been a very bullish day other than the fact that it is basically sitting still, something that the market hasn’t been doing much of as of late. Ultimately, I think that there is a good chance that we rally for a couple of days, but quite frankly I’m looking for some type of exhaustive candle to take advantage of as the market is most certainly in a bearish trend.
NATGAS Video 11.06.19
At this point, I suspect that the $2.40 level will be minor resistance, while the $2.50 level will be much more significant resistance. At that point, I think that I would become much more aggressive when it comes to shorting the marketplace. Even if we break above there, the market probably goes looking towards the $2.60 level where we see the 50 day EMA, which of course in and of itself a resistive barrier as well.
If we do break down below the $2.30 level, then we could go down to the $2.25 level, perhaps even the $2.00 level after that. All things being equal, I do think that we test both of those areas considering how negative it has been, but ultimately we have no reason to think that this market should go higher for the longer-term, at least not this time a year as demand will be a lot lower. Until fall, there’s no reason to think about going long.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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