- The natural gas market has been very noisy during the trading session on Monday as we initially gapped lower only to turn around and show signs of life and break above the top of the hammer from the previous session on Friday.
- At this point, we are above the 200 day EMA, but we are struggling. think we might get a little bit of sideways action here, but I think ultimately if we do get a pullback, I do believe that buyers are interested.
- After all, we had a massive gap at the beginning of the November contract, which makes quite a bit of sense and therefore I think we are looking toward the colder months and with the November contract being the beginning of colder temperatures, people are starting to look at the idea of more demand.
Ultimately, I do think that natural gas eventually moves its way up to the $4 level, but it probably takes quite a bit of effort to do so. While I think it makes sense, I also think that time will have to pass before we can get to that massive level.
Top Forex Brokers
Noisy Trading Ahead? Maybe.
Short-term pullbacks, I think, offer buying opportunities, and that's exactly what I'm looking for right here. Maybe we will get a little bit of a gap fill and then a turnaround, which I am all over if that happens. If we can break above the $3.40 level, then I think we may not get that gap filled. And ultimately, we just continue to grind higher. That probably takes some type of external factor, but at this point we are most certainly at a major inflection point that typically favors natural gas over the next couple of months. So, with that, I am starting to buy on the dips or breakouts.
Ready to trade daily Forex forecast? Here’s a list of some of the best commodities brokers to check out.