Natural gas markets initially rallied a bit during the course of the trading session on Thursday, but as you can see has ran into resistance above the $5.50 region again. This is a market that has been extraordinarily bullish, and needless to say parabolic. The parabolic move that we have seen suggests that we eventually need to pullback and discover buyers. When a market rallies the way this one has, you eventually have to ask who is left to continue buying contracts?
NATGAS Video 17.09.21
There are a lot of concerns when it comes to the refining capacity in the southeastern part of the United States right now, especially as the Europeans are desperately short on natural gas. There are games being played by the Russians, and then of course we previously had a massive heat wave. All of that has made this market a bit too tight, thereby driving up the price.
That being said, the market is likely to continue to see pullbacks that get bought into, because quite frankly we just need to find “value.” The $5.00 level is an area that a lot of people would be paying close attention to, as it is a large, round, psychologically significant figure, and will attract a lot of attention. If we were to break down below there, then the market goes looking towards the $4.50 level underneath. If we break down below there, then we could go looking towards the $4.00 level underneath that comes into the picture. The 50 day EMA is currently at the $4.25 level, and therefore I think it is also an area that could attract attention. I would not be a seller, but I would pick up a bit of value as it appears.
For a look at all of today’s economic events, check out our economic calendar.
Business - Latest - Google News
September 16, 2021 at 11:06PM
https://ift.tt/39b5QZq
Natural Gas Price Forecast – Has Natural Gas Finally Discovered Gravity? - FX Empire
Business - Latest - Google News
https://ift.tt/2Rx7A4Y
Bagikan Berita Ini
0 Response to "Natural Gas Price Forecast – Has Natural Gas Finally Discovered Gravity? - FX Empire"
Post a Comment