Natural gas markets have fallen initially during the trading session on Wednesday but have turned bullish by the middle the day to show signs of strength yet again. Ultimately, this is a market that I think continues to find plenty of interest, and therefore it is worth paying attention to the fact that we have formed a bit of a tale on the candle. Beyond that, the tail filled the gap from several candles ago, so that is also another technical reason to think that perhaps the buyers are starting to make their presence known again.
NATGAS Video 25.06.20
Above, we have the 50 day EMA sitting around the $1.80 level, so it does suggest that we might have a bit of resistance there, and of course it is a large, round, psychologically significant figure which of course attracts a lot of attention. In fact, it seems to me that natural gas likes to dance around the $0.10 figures, so all of this lines up quite nicely.
That being said, I do believe that it is only a matter of time before we get the opportunity to buy on dips, and perhaps even make a move above the $1.80 level to go looking towards the $2.00 level. Ultimately, this is a market that I think will continue to see volatility but if the oversupply of drilling in the United States continues to face a significant amount of bankruptcies, that could send this market much higher. Furthermore, people are starting to bet on the idea of economies reopening.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- US Stock Market Overview – Stocks Drop Led by Energy, Utilities Buck the Trend
- Crude Oil Price Forecast – Crude Oil Markets Get Hammered
- USD/JPY Price Forecast – US Dollar Finding Short-term Floor
- Gold Price Prediction – Prices Consolidate and Form Doji Day
- Silver Price Forecast – Silver Markets Pullback to Find Buyers Again
- S&P 500 Approaching a Defining Moment