Natural gas markets initially fell during the trading session on Monday, reaching down towards the 200 day EMA at the $2.56 level, before turning around to show signs of life again. The natural gas markets of course have a major boost this time year due to demand out of the northeastern part of the United States, and of course the fact that temperatures are already cold in this area. As it is used to heat homes, the demand will spike when it comes to natural gas, although at this point one of the biggest problems is that there was an increase in drilling this past year, and that suggests that it’s going to take a little bit more momentum to finally break out to the upside. That being said, I am bullish, but I recognize it’s going to be noisy.
NATGAS Video 19.11.19
With this in mind I continue to buy short-term pullbacks, but I don’t necessarily look for explosive move quite yet. Eventually though, we will break above the gap near the $2.75 level, and therefore if we were to break above there it’s likely that we can really start to pick up some type of momentum to the upside. It is going to continue to be very noisy and erratic, so keep in mind that certain amount of patience will be needed in order to take advantage of this scenario. Ultimately, I do like the idea of buying natural gas, but I recognize we have at least one major hurdle to clear before we can go much higher.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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