Natural Gas Markets Do Nothing During Holiday Session
Natural gas markets have gone back and forth during the trading session on Monday as traders will be focusing on Memorial Day more than anything else. At this point in time, it is likely that the market is going to continue to see noisy trading, as the 50 day EMA is currently right in the middle of the last couple of candlesticks. Ultimately, the market looks as if it is trying to build up some type of base, perhaps trying to trade back and forth between the 50 day EMA and the 200 day EMA which is closer to the $2.10 level.
NATGAS Video 26.05.20
Keep in mind that there is a major gap underneath that could offer quite a bit of support, and in fact already has. The question now is whether or not we are trying to turn the turned around? At this point in time it still looks to be possible, and it should be noted that the markets have been rather resilient, especially considering just how oversupplied we are with natural gas in general.
However, we have a whole slew of bankruptcies coming out that will bring down supply. Ultimately, this is a market that will be very noisy, but it certainly seems to favor the upside more than anything else. If we can break above the 200 day EMA, then it is likely that the market is going to continue to reach towards much higher levels, just as a break down below the $1.50 level could be negative.
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This article was originally posted on FX Empire
