Natural gas markets continue to look sluggish as we are testing a major uptrend line. There is also a gap in this area so it’s likely that we will find a certain amount of buying pressure in this area. However, if we were to break down below the $2.30 level, this would be a horrific sign for natural gas. All things being equal though, the markets are moving on the idea of warmer temperatures in the middle of December, which will drive down demand. That being said though, weather forecasts change, especially when it comes to the winter months in the United States, so this can change at any moment.
NATGAS Video 02.12.19
If we were to break down, I suspect that there is a massive amount of support at the $2.00 level as well, and that could be the “floor” of the market. If we were to break down below there, then winter is essentially canceled for this market. All things being equal though, we should see a bounce relatively soon, it only needs a few cold weather forecasts to turn things back around. At this point, the market is going to continue to be very noisy, and therefore it’s going to be difficult. Having said that, the market is likely to rise eventually, but we need a little bit of a push in order to make that happen. This is a very negative look into the market in the short term, so I suspect you probably have time before having to jump in and by the market.
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This article was originally posted on FX Empire
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