FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
59,455,522Confirmed
1,401,229Deaths
41,093,696Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
Natural Gas

Natural gas markets have gone back and forth during the trading session after initially gapping lower on Friday, testing the $2.80 level for support, and the $2.90 level as resistance. It looks as if we are ready to go and attacking the $3.00 level given enough time, so therefore the uptrend is very much intact. I believe that pullbacks will continue to offer buying opportunities, especially as we are in the cycle way and seasonally bullish time of year, as we are trading the November contract. As demand increases, price rises, or at least that is the way it is supposed to work.

NATGAS Video 28.09.20

There is a gap underneath that extends all the way down to roughly $2.40 that needs to be paid attention to, so I do think that it is almost impossible to short this market at this point in time. Do not get me wrong, I know that there will be plenty of supply out there given enough time, but this time a year is almost always bullish for the market and it is worth noting that the natural gas markets rallied in the face of a very strong US dollar, something that most other commodities have not been able to do.

With all of that in mind, I am a “buy on the dips” type of trader and I think that if we can break above the $3.00 level, we will probably initially go looking towards the $3.20 level, and then possibly as high as $3.50 over the longer term. That being said, look for value and do not simply chase the trade.

For a look at all of today’s economic events, check out our economic calendar.

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US