Natural gas markets initially fell during the trading session on Tuesday but continues to find buyers underneath. That being said, we are at extremes and a bounce could make a bit of sense but it’s very difficult to be bullish and natural gas. I read a report just 24 hours ago that the Permian Basin is burning off enough natural gas as a side note of the petroleum industry to power the entire state of Texas every day. For those of you in Europe, think France.
NATGAS Video 24.04.19
In other words, natural gas just simply isn’t worth being bothered with for most companies. Granted, it can only go so far to the downside before it becomes more expensive to capture than it’s worth, and we are certainly getting close to that area, but in the end this is a market that simply can’t be trusted to the upside.
The 50 day EMA is currently at the $2.75 level, which I think would be an excellent selling opportunity if we get any type of bounce. If we break down below the lows of the candle stick for the trading session on Tuesday, the market then drops down to the $2.25 level. Overall, this is a market that should continue to be very noisy, but decidedly bearish. In fact, there are only a couple of times during the year that you can consider buying this market for any strength. That of course is winter time in North America. We are nowhere near that currently so selling continues to be the best way to deal with this market.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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