Natural gas markets have gapped higher to kick off the trading session on Thursday, and then went back and forth both before and after the jobs figure to form a relatively small candle. Ultimately though, we have seen a significant bounce from the lows and that does make quite a bit of sense considering that the United States is getting hotter, and that means demand for natural gas will probably pick up. If that is going to continue to be the case, then obviously that is bullish for the market, at least for the time being. Furthermore, we are starting to see bankruptcies finally that could start to wear upon the oversupply of natural gas.
NATGAS Video 03.07.20
A break above the $1.80 level, which by extension means we have broken above the 50 day EMA, could send this market looking towards the $2.00 level which I do think eventually happens. Between now and then, it is highly likely we may get some choppiness, but I look at pullbacks at this point as a potential buying opportunity as the $1.50 level is obviously incredibly supportive. The 50 day EMA is currently offering dynamic resistance, but as you can see and past trading the market does break through it on occasion. I believe at this point when we look at the historical continuous contract, the $1.50 level is a major support. That is going to be difficult to break down. In fact, you can make a bit of an argument for a little “micro bullish flag” on the chart.
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This article was originally posted on FX Empire
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