Natural gas markets went back and forth during the trading session on Monday, as we continue to see a lot of noise in this general vicinity. That being said there is a potential uptrend line sitting in this general vicinity, as well as a massive gap. That being said, the $2.30 level continues to be crucial, and as a result we have seen a lot of volatility in this area. The fact that we are kind of hanging out in this general vicinity suggests that there is at least some hesitation to short natural gas at this point, which is the first sign that we might be turning around. That being said, if we can break above the top of the candlestick for the trading session on Monday, then we may have something going.
NATGAS Video 03.12.19
Granted, there is a horrible candlestick from the Friday session but when you look at it you don’t have to pay too much attention to and in the sense that it was on Friday, which would have been very low liquidity as it was the day after Thanksgiving. While it was negative day, and there are weather reports of warmer temperatures in the middle of December, the reality is that it’s only going to take a correction in the weather report to send the market straight back up in the air. This is very common this time of year in the northeastern part of the United States. With that low-volume selloff, it does look ugly, but it has to be kept at bay a bit as you do not wish to read too much into a day that could have easily been manipulated. If we were to break down below the $2.20 level though, then we will almost certainly race down to the $2.00 level.
This article was originally posted on FX Empire
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