Christopher Lewis
Add to Bookmarks
Natural Gas

Natural gas markets have initially tried to rally during the trading session on Monday but have also pulled back a bit from the 200 day EMA. The $2.60 level of course is a large, round, psychologically significant number, and the scene of a gap previously that had been filled. Ultimately, this is a market that I think continues to see a lot of selling pressure above, and therefore I am more than willing to fade this market. After all, the demand for natural gas will more than likely drop over the next several months, as temperatures rise over the next several months. After all, we are heading into the springtime and then eventually summer. While natural gas is used to cool off as buildings and the like during summertime, the demand is much less than it is in the wintertime.

NATGAS Video 13.04.21

Furthermore, there are a lot of questions as to whether or not we will see a significant amount of pressure due to a strengthening US dollar in general. That being said, the market was to break down below the bottom of the candlestick for the trading session on Monday, then I think it opens up a move down to the $2.40 level, possibly down to the $2.25 level after that. One thing that we see time and time again is that this time of year is typically very negative for natural gas, so there is a bit of a longer-term cyclical trade involved in this market. All things been equal, I am a seller or not a buyer, in fact I have no interest in buying natural gas till at least October, perhaps even later than that depending on how weather plays out.

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