Natural gas markets initially fell during the week but continues to find buyers underneath as we are trying to turn the entire trend around. That being the case, the 50 week EMA looks as if it is trying offer support, and it should be pointed out that the last two weekly candlesticks are now hammers, which is a bullish sign. By breaking above the top of the hammer that formed during this past week, it’s very likely that the natural gas markets will attack the shooting star from two weeks ago. The 200 week EMA is just above and that will more than likely be a barrier as well. Nonetheless, I do think that this market goes higher due to the time year and the growing demand.
NATGAS Video 25.11.19
Another huge bonuses the fact that the inventory number was much more bullish than anticipated this past week, and that could be the beginning of something rather interesting from a cyclical play standpoint. That being said, I like buying short-term pullbacks but from a longer-term standpoint simply buying and hanging on until the middle of January is typically the play the EC in this market. Demand will continue to pick up as temperatures have been colder in the United States than anticipated, and therefore I would anticipate seeing a lot of strength over the next several weeks. The $3.00 level will cause psychological resistance, but should be able to be chewed through and a lot of cold weather will probably be a major push for that.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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