Natural gas markets have gone back and forth during the trading session on Tuesday as we continue to see a lot of noise. Natural gas is at historic low levels, and I think at this point we are starting to see people trying to find a bit of value in a market because it is so “cheap.” Looking at the chart, I do see the previous gap as a major support level, that extends down towards the $1.70 level. I think somewhere between here and there we should see some type of bounce that we can take advantage of.
NATGAS Video 03.06.20
The 50 day EMA above is a major technical level the people will be paying attention to. Ultimately, this is a market that I think will continue to see a lot of volatility, but I think we are trying to form a larger “basing pattern” due to the fact that the natural gas markets are about to see a wave of bankruptcies it will take quite a bit of supply off-line.
Furthermore, the market is trying to price and some type of economic “restart” to the economy globally, therefore the idea of demand. This might be a little bit of a “perfect storm” for an attempt at a trend change but will obviously take a significant amount of momentum to make that happen. I believe at this point it is likely we will see choppy with upward momentum more than anything else.
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This article was originally posted on FX Empire
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