FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks
Natural Gas

Natural gas markets have pulled back again during the trading session on Thursday as we continue to see the $3.00 level offer a significant amount of resistance. At this point, it looks like the natural gas markets have ran into a major resistance barrier and supply region. At this point, the market is likely to look at the $2.90 level as a bit of a “trapdoor” that could open up a move down to the 50 day EMA, perhaps even down to the That we see underneath. The $2.68 level is the bottom of that gap, and I think it is more than likely going to continue to attract a lot of support.

NATGAS Video 21.05.21

That being said, the market were to break down below there, then it could send this market down towards the 200 day EMA, possibly even down to the bottom of the overall trading range which is closer to the $2.45 level. The market clearly is struggling to continue to go higher, and of course you have to think that the market will start to focus on the fact that demand is dropping. With that being the case, I continue to look for selling opportunities on a breakdown below that support level just under where we currently sits. I recognize that we will continue to see a little bit of a commodity boom, so that of course will be felt over here as well. That being said, natural gas simply has far too much in the way of supply for it to continue going higher for any great length of time as temperatures rise in the northern hemisphere, driving down demand.

Advertisement
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.

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