Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis
Natural gas

Natural gas markets have pulled back during the trading session on Tuesday to reach down towards the 50 day EMA yet again. This is an indicator that seems to be like a magnet for price in this market, so of course it does make sense that we would find a way back down here. Ultimately, I think that we eventually go higher in the short term, due to the fact that there will be much more demand for natural gas as cold temperatures slam into the United States. That being said, I still do not know whether or not we can make a fresh, new high but clearly that would be the hope of bullish traders. It all comes down to weather and forecasts, especially around the New York, Boston, and Washington DC areas. Remember, natural gas tends to be a very localized market.

NATGAS Video 02.12.20

To the downside, I see the $2.60 level is essentially the short term “floor” in the market, but I still prefer buying dips regardless. I have no interest in shorting natural gas until we start trading spring contracts, so this is a one-way trade as far as I am concerned. Currently, we are trading the January 2021 contract and that of course does imply that there would be a certain amount of demand going forward. As long as that is going to be the case, I think we have to look at this as a market that still has a lot of upward possibilities, and need to ignore selling opportunities, lease for the time being. Ultimately, I am bearish in natural gas longer term but over the next month or two I will continue to favor the upside.

Know where Natural Gas is headed? Take advantage now with 

75% of retail CFD investors lose money

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

  • Your capital is at risk
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.
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.