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Natural gas markets initially fell towards the $2.50 psychologically important figure, which of course attracts a lot of attention. That being said, the market more than likely will continue to try to turn around for the winter rally as demand picks up and both the European Union and the United States. Underneath, there is the 50 day EMA that should offer support near the $2.40 level, so somewhere between here and there should be plenty of buyers. To the upside, there’s also the 200 day EMA that sits at roughly $2.60 above, so if we can break above there the market is likely to continue going higher for the season.
NATGAS Video 24.09.19
To the upside, the $3.00 level is the initial target, based upon the pole on the bullish flag underneath. The $3.00 level being broken to the upside would be very bullish and could send this market much higher. At this time, it appears that short-term pullbacks will continue to be buying opportunities, and as a result you should continue to look for value in a cyclical market that is ready to go higher. Ultimately, signs of exhaustion probably will offer buying opportunities until the beginning of January which is the cyclical scenario that we normally get. If we were to break down below the 50 day EMA though, that could change a lot of things so be very cautious about that. All things been equal though, this time of year does typically see a massive move higher. The most recent move to the upside might have been the beginning of that.
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This article was originally posted on FX Empire
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