Natural gas markets gapped higher to kick off the week, shot towards the 200 day EMA, and then pulled back to show signs of weakness. We haven’t filled the gap yet quite fully, so it’s very likely that we will see a bit of buying pressure underneath. This will probably be seen on shorter-term charts more than anything else, so keep that in mind as well. Alternately, if this market breaks above the top of the shooting star for the week, that would be a very bullish sign as well.
NATGAS Video 11.11.19
The temperatures in the United States are starting to plummet, although the inventory figure for the previous week was a bit bearish. That being said though, it’s more than likely a short-term phenomenon because quite frankly this time of year is very cold in the United States and it drives a lot of demand into this market as quite a bit of the homes in the United States are heated by natural gas. Beyond that, the European Union sees more demand as well. At this point, the market is likely to continue going higher but there is a lot of supply above to chew through. Short-term pullback should be supported, and even if we were to break through the daily gap, the 50 week EMA at $2.60 should also offer a bit of support that could turn this market around as well. Typically, this will run until early January.
This article was originally posted on FX Empire
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