Natural gas markets continue to very soft in general, but during the trading session on Tuesday we saw a bit of stability, something that would certainly be welcomed by those long of this commodity. There is a gap that still needs to be filled from the open of the week, meaning that we could get a bounce of about five cents, but at that point one would have to anticipate a bit of a resistance barrier. This is predicated by warmer temperatures being forecasted in the United States for Christmas. This obviously is a killer for demand, but at this point we are at such a low level that one would have to think, and reversal wouldn’t take much to kick off. If nothing else, we could get a bit of profit-taking down of these extraordinarily low levels.
NATGAS Video 11.12.19
The natural gas markets are typically very volatile, so all it will take you some type of weather report calling for extraordinarily cold temperatures, and then natural gas will climb drastically. Beyond that, with the prediction models are notoriously fickle this time of year in the northeastern part of the US, so a sudden turnaround isn’t completely out of the cards at this point. That being said, this is a very bearish market and quite frankly this has been one of the worst winters that I can remember in the natural gas markets. One would think that as we get closer to New Year’s Day there needs to be a surge higher or this will have been a bit of a disaster for natural gas suppliers this year.
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This article was originally posted on FX Empire
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