Christopher Lewis
Add to Bookmarks
Natural Gas

Natural gas markets have gone back and forth during the course of the trading session on Tuesday, as the market is likely to find a little bit of trouble here at the top of the most recent consolidation range. The market has recently been keying off of the short-term temperatures in the United States, which the natural gas market is notorious for doing. The reality though is that sooner or later the warmer temperatures will start to weigh upon the price of natural gas, and therefore I would anticipate that the downtrend should continue, as the oversupply of natural gas will continue to be a major issue.

NATGAS Video 21.04.21

The 200 day EMA is near the $2.58 level, and I think it is likely that we will go looking towards that level given enough time. There is a small gap underneath but at the end of the day that Is probably something that gets broken through rather quickly. Even through all of that, even if we break above the last couple of days, I still am looking for selling opportunities because of the cyclical dynamic of natural gas markets that we see this time of year. The $2.88 level above is a major resistance barrier as well, so with that being the case I think it is only a matter of time before sellers command. I am simply looking for some type of exhaustive candle to get involved. Yes, it has been a nice rally, but this is more about the overall commodity rally than any real demand. The first cracks in the ice when it comes to commodities will send this market much lower.

Know where Natural Gas is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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

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