Natural gas markets rolled around a bit during the trading session on Tuesday early in the electronic session, but returned the gains to form a less than desirable Bullish candlestick. This shows that the market is often getting a little ‘heavy’ at the moment, perhaps ready to pull back and offer a little value. The natural gas markets have gotten a bit to themselves, so at this point I think it makes quite a bit sense that we will continue to see noise at this point. Apparently, markets for natural gas have had an explosive move to the head and cut through the 200 day EMA, as there was not even one there.
NATGAS Video 12.08.20
With the falling US dollar, it makes sense that we might continue to see commodities standing, and that natural gas will obviously benefit from that. That being said, I love the idea of buying this brand at some kind of dip, especially as we return to the $ 2.00 level. Upwards, I think the $ 2.40 level is likely to be the next target, and since many companies around the United States are ripe for bankruptcy, it should come as no great surprise to suggest that perhaps traders are trying to step up from the potential shortage of supply. In addition, we deserve the September contract now, which is obviously the beginning of cooler weather in North America. With all that said, I think we’ll continue to go higher, given enough time.
