Natural gas markets have fallen during the trading session on Monday, showing signs of weakness yet again. That being said, we have turned around to hang onto the uptrend line of the triangle that I have marked on the chart, so it will be interesting to see whether or not we can stay above here. It now looks as if the $5.00 level is going to continue to offer issues, but at this point we have sliced through enough times that I think the resistance is more psychological than structural.
NATGAS Video 23.11.21
Keep in mind the natural gas markets are an extremely elevated levels, so it should not be a huge surprise to see that we may struggle to go a lot higher from here, but clearly this is the time year where you see a lot more demand. Temperatures have dropped in the northeastern part of the United States, that of course tends to put a lot of upward pressure on the price. Nonetheless, we are starting from such a high base that it may not matter at this time.
If we break down below the bottom of the candlestick for the Monday session, I suspect that we go looking towards the 200 day EMA underneath, which is currently sitting at the $4.13 level. On the other hand, if we can take out the 50 day EMA above, currently sitting at the $5.15 level, then this market can resume the uptrend. We are about to get a massive squeeze in one direction or another, so hang on.
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This article was originally posted on FX Empire
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