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Natural gas markets continue to shoot to the upside on Monday

By:
Christopher Lewis
Updated: May 29, 2018, 04:25 UTC

Natural gas markets rose during the trading session on Monday, as the CFD market continues the takeoff based upon electronic trading around the world. The market has use the $2.90 level to be a launching pad.

Natural gas daily chart, May 29, 2018

Natural gas markets have rallied rather significantly during the day on Monday using the $2.90 level as support. I think that the market is making a beeline towards the $3.00 level above which of course should be resistance based upon psychological noise just as much as structural. I also can make an argument for the market breaking above there and reach towards the $3.10 level. I believe that level will be massive resistance, so it’s very unlikely that we break above there easily. I believe that the three dollars level will also offer a bit of resistance. Because of this, I’m looking for a short-term pullback and then eventually breaking above there.

Breaking above the daily up trending channel of course is a very bullish sign, and now we have the likelihood of a continuation of the move. If we did break down below the $2.88 level, the market could drop to the $2.80 level. That’s an area that has been important more than once, so it would make sense that we would continue to go looking for it if we do break down. With hotter temperatures in the northeastern part of the United States, we have been chewing away at the natural gas supply, so it makes sense that short-term traders continue to push and force their way into the market.

Longer-term, I think that we have a major oversupply of natural gas, and that will continue to be a major issue going forward. However, in the short term it’s obvious that the buyers are in control.

NATGAS Video 29.05.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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