Natural gas markets have dipped towards the $1.80 level only to show signs of stability again. This is the area where we had seen a major gap before, and therefore it does make sense that we would see a lot of interest in picking up natural gas based upon the “fill the gap” technical standard that a lot of people agree on. That being said, the market is very likely to continue seeing a lot of noise in this area, as we have sold off way too hard as of late to accept this noise. Now that we have made a round-trip to this, it is likely that we are going to see a bit of trouble. With that being the case, I think that it is important to break above the highs of the trading session on Tuesday in order to get bullish, and even then, it is going to be more of a longer-term move.
NATGAS Video 23.09.20
I believe that the $2.00 level will be rather difficult to get above, so I believe it is only a matter of time before the sellers would come back into the market in that general vicinity, as it is such a large, round, psychologically significant figure, and an area where we have seen a lot of action at previously. However, once we get above the $2.10 level, it will become obvious that almost everybody that the market is ready to go higher. At this point in time, the market is likely to continue to see a lot of noise, so keep that in mind and keep your position size reasonable.
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This article was originally posted on FX Empire
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