Natural gas markets rallied a bit during the trading session on Thursday, but as you can see we still are in consolidation. There is a certain amount of resistance above at the 50 day EMA that will continue to cause issues. At this point, any rally at this point will find plenty of sellers, and I think what we are looking at is a “fade the rally” type of attitude. All things been equal though, we are getting closer to colder months in the futures market is starting to rollover into the October contract. While that is a little bit colder than September, we still aren’t quite where we need to be in order to see a massive move higher.
NATGAS Video 23.08.19
If we can break above the 50 day EMA then I think the next major resistance is going to be closer to the $2.40 level, and I would expect to see a lot of selling pressure in that area. Ultimately though, I think that we will turn around once we start trading colder months, and as we get further into the October contract we may see a little bit more upward pressure. In the short term though, I think we continue to fade this rally and reach down towards the $2.00 level again. That’s an area that is a large, round, psychologically significant figure, which could attract quite a bit of attention around the world.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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