Natural gas markets have rallied a bit during the trading session on Wednesday, looking very much like they are ready to fill the gap from the beginning of the week. At this point, we can break above there and then clear the $2.40 level it’s likely that we continue to go much higher. The 50 day EMA will of course offer a bit of resistance next, and then eventually the 200 day EMA. All things being equal, the market will be focusing on the next weather report, and right now it is supposedly going to be mild between now and Christmas Day in the United States. That being said though, it’s very likely that the markets will be choppy to say the least.
NATGAS Video 12.12.19
At this point, it looks very likely that we will continue to see noisy trading conditions, moving right along with weather but you should also keep in mind that we are at extraordinarily low prices, so the rip to the upside could be rather quick. To the downside, although we could continue to go lower the likelihood of it being long-held is rather remote this time of year. Quite frankly, we only need to see cold weather reappear in order to send this market much higher. Eventually, we will get that rip to the upside, so I remain optimistic, but I also recognize that this has been a horrible winter for natural gas so far. In the short term it looks like that gap gets filled.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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