Natural gas markets pulled back slightly during the trading session on Wednesday, as we continue to churn in a market that is oversold. At this point, I think it’s only a matter of time before the market rallies again towards the crucial $3.00 level, an area that has a huge gap at it. The 50 day EMA is hanging around that level as well, so I do think that is very likely that we are going to see a lot of resistance in that area and it could represent a nice selling opportunity and what has been such a negative market.
NATGAS Video 28.02.19
At the first signs of exhaustion in that general vicinity, I’m all over shorting this market. While I do expect a bit of a bounce from here, I’m not willing to buy natural gas as the supply simply outweighs the demand. With that being the case, it’s a matter of sitting on our hands and the short term and simply waiting for the next nice set up. When you are between a supply zone and a demand zone, you’re essentially risking money for no reason. There’s no reason to think that the longer-term outlook for natural gas is going to change anytime soon, and therefore I’m willing to sell every time it rallies, and simply have no idea trying to pick the bottom of this market. The $2.50 level has been massive support in the past, so I don’t think we break down below there, but I am willing to take advantage of what has been an obvious sell.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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