Natural gas markets continue to be very noisy, but as we start to get colder temperatures in the United States, the natural gas markets of course are rallying. This is something that is to be expected from a cyclical point of view, and now it looks as if we are ready to go looking towards the gap above, which had previously been filled. Now it’s possible that we can break out above there. At this point, I’m a buyer of dips, and I also recognize that the 200 day EMA underneath is going to continue to offer support, as the 50 day EMA is now starting to get close to crossing above it. That is the “golden cross”, so a lot of longer-term traders will be paying attention to that.
NATGAS Video 25.11.19
All things being equal, if we can make a fresh, new high then it means we will attract more buying and should go looking towards the $3.00 level above. Ultimately, I think this market will not only attack the $3.00 level but push it even higher than that. At that point it will free the market to make an impulsive move to the upside, showing signs of strength. Ultimately, I have no interest in shorting this market, because quite frankly the market will continue to burn away some of the supply as seen in the most recent inventory figures that sent this market higher to begin with. Ultimately, this is a market continues to be very erratic and sharp moving, and the weekly weather reports will continue to be the biggest driver.
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This article was originally posted on FX Empire
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