Natural gas markets have rallied slightly during the trading session on Thursday, as we continue to reach towards the 50 day EMA. At this point, the market looks as if it is trying to figure out what we want to do, as the natural gas markets are highly sensitive to global growth, which of course is picking up but at the end of the day it is much lower than it was previously. Because of this, I am a bit cautious about getting overly excited for natural gas, but I also recognize that the market is probably going to continue to see the fact that natural gas is so cheap as something that they want to pay attention to. That being said, we are starting to see a lot of volatility so we could reach towards lower levels that I think there is plenty of buying pressure underneath.
NATGAS Video 05.06.20
If we can break above the $2.00 level that will obviously be a major shift in attitude but I think given enough time we are looking at an opportunity to try to form a larger rounded bottom, which is a long and painful process of turning things back around. Ultimately, the $1.60 level underneath should be massive support, so I think that is about as low as this market goes. The $2.07 level is where the 200 day EMA is, so keep in mind that there will be a certain amount of resistance there as well. I do not necessarily think we break above there anytime soon, but obviously we are trying to turn things around in the midst of a lot of bankruptcies in the United States.
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This article was originally posted on FX Empire
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