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

Natural gas markets have rallied during the trading session on Wednesday to reach towards the previous uptrend line, and the 200 day EMA as well. That is an area that will offer a significant amount of selling pressure, and I do think that signs of exhaustion would come back into play and send this market lower. The $2.45 level underneath is support, but I think if the market were to break down below there, then it opens up a move to the $2.25 level. That is an area that I think it would be massive support, and as a result I anticipate that a bounce could make a certain amount of sense. Nonetheless, I would sell that bounce as well and is the demand for natural gas is going to fall off of a cliff.

NATGAS Video 08.04.21

The natural gas markets will probably go looking towards the $2.00 level given enough time, and that is my longer-term target. Ultimately, I think that we have recently broken through a bearish flag, and I think that gives us an opportunity to start shorting. Quite frankly, natural gas is a very difficult market for retail traders to get a handle on, because it moves based upon the weekly forecast of weather, which of course is very difficult to get a gauge on. However, longer-term we clearly have warmer temperatures coming to the northern hemisphere so my default position will be to short this market every time it shows signs of strength. I have no interest in buying natural gas until about October, so I am simply looking for opportunities.

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