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Natural gas markets have shot straight up in the air during the course of the week to pierce the $4.00 level. This is an area that of course attracts a lot of attention, but quite frankly we are in the midst of a major breakout and of course you should keep in mind that the market is being lifted by the heatwave out west in the United States that is continuing. Demand has spiked, right along with the overall commodity boom to make this a scenario where the market has further to go.
NATGAS Video 26.07.21
Speaking of having further to go, when you look at the daily chart you can see that there is a bullish flag that measures for a move to the $4.40 level, right along with the previous consolidation that had been hanging about between $2.40 level underneath and the $3.40 level at the top of that range. That also measures for a move to the $4.47 level and therefore I think it all ties together quite nicely. Furthermore, the candlestick for the week is closing at the very top of the range, which shows that there is more than likely going to continue to see upward momentum and follow-through.
Short-term pullback should continue to be buying opportunities, at least until we get above at the $4.40 level where it could form a major “double top” from a long-term multi your perspective. We will have to wait and see what happens with the heat wave in the US, because that is without a doubt one of the biggest drivers of this market to the upside. We also have the commodity rally in general, I think that is only peripherally helping this market.
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This article was originally posted on FX Empire