Yahoo Finance Natural Gas Markets Pull Back Towards 200 Day EMA
Natural gas markets have pulled back a bit during the course of the trading session on Wednesday to show signs of hesitation, as we are sitting just above the 200 day EMA. The 200 day EMA of course is a longer-term indicator that a lot of people pay attention to, but it is also worth noting that the $4.10 level just below was the top of the overall consolidation area that we had been in. Because of this, the market is likely to see a lot of interest in this area, as previous resistance should be support. Because of this, if we can break down below the $4.10 level on a daily close, I think we will continue to fall apart.
NATGAS Video 20.01.22
Keep in mind that natural gas is highly volatile, and of course very sensitive to short-term weather fluctuations in the northeastern part of the United States. After all, we just had a major storm hit the New York, Boston, and Washington DC area. However, it is starting to go away and therefore people are looking towards the future, recognizing that there will be less demand for natural gas going forward. With this, I think it is probably only a matter of time before we see a continuation of the overall selling.
Keep in mind that we are trading the February contract already, which of course is the last winter months. Once we get into the contract of March, then you start to talk about spring when demand will naturally fall off anyway. Because of this, I remain bearish.
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This article was originally posted on FX Empire
