Natural gas markets gapped higher to kick off the trading session on Monday and to start out the week with a huge bang. Keep in mind though that Chicago was essentially closed as Presidents’ Day was being celebrated in the United States. Ultimately, the market looks as if it is going to try to go looking towards the $2.00 level, and at this point it’s likely that the big figure will cause a significant amount of resistance, not only due to the fact that there is a slight gap in that region, and of course the 50 day EMA is starting to reach towards that area.
NATGAS Video 18.02.20
Ultimately, I’m looking for some type of exhaustive candlestick to start shorting again, because quite frankly even though there are colder temperatures coming to the United States, it’s a short-term factor, and there is still a massive amount of oversupply that will weigh upon the market. All things being equal, the market looks very unlikely to be able to climb for any significant amount of time, and even if we were to break above the $2.00 level, the market should have plenty of resistance at the $2.20 level. At this point, the market is very likely to find a certain amount of selling pressure given enough time. I will be waiting for some type of exhaustive candlestick in order to start shorting again, and even though we have had a nice shot higher initially during the session, it should only offer a place to sell above.
This article was originally posted on FX Empire
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