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Christopher Lewis
Natural gas daily chart, October 23, 2019

Natural gas markets have rallied a bit during the trading session on Tuesday, reaching towards the $2.30 level in early trading. The 50-day EMA just above of course is going to offer a significant amount of psychological and structural resistance, but at this point it looks as if we are trying to find some type of base in order to rally and go higher again. If that’s going to be the case, then the market is likely to continue to go towards the upside, perhaps reaching towards the $2.40 level, and then eventually the $2.50 level. I do believe that it’s only a matter of time before this happens, because quite frankly this is a significant base that we are building and of course this is the time a year will we start to see buyers think about cold weather.

NATGAS Video 23.10.19

Paying attention to whether in the northeastern part of the United States is probably the most crucial thing at the moment, but we do have some concerns of demand to considering that economic growth seems to be slowing down. That being said, we are at historically low levels, so it makes more sense for a bounce than not. In the meantime, though, it’s likely that we are going to continue to find buyers on dips, looking for value going forward. We will eventually get that explosive candlestick above the $2.40 level, and once we do that could be the beginning of a much more significant move to the upside. Currently, it looks as if the $2.20 level is trying to be bad base.

Please let us know what you think in the comments below

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