Natural gas markets initially fell during trading on Thursday, perhaps in preparation of the natural gas storage figures coming out the United States. That being said, the number with much more bullish than anticipated and shows that there is indeed growing demand for natural gas in America, and then should of course translate into higher prices around the world. As temperatures plummet in the northeastern part of the United States, that can cause a significant boost in price, driving traders into this market to push for the cyclical bullish season.
NATGAS Video 08.11.19
Looking at the chart, it’s obvious that the gap at the $2.75 level has been crucial, as it has not only signified a breakout, but it has now shown itself to be supportive and therefore market memory has stepped back into play. If that’s going to be the case, it’s very likely that this market will continue to find plenty of buyers on dips as it typically will this time a year anyway. In fact, the bullish run normally runs until about the middle of January, where traders start to sell it off again as they will then be focusing on spring contracts. All things being equal, buying dips should continue work until about the end of the first week of January when traders come back from the holidays. The $3 level above should cause a little bit of resistance, but at the end of the day it should also be over, as well.
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This article was originally posted on FX Empire
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