natural gas markets It fell a bit during the trading session on Thursday, hitting the 200-day moving average, which is of course a major technical indicator. In fact, the market is very likely to rebound from here as we are trying to form a small hammer. This is of course a good sign of a bounce, but quite frankly at this point in time I’m not ready to buy this market and I’d rather sell this market when signs of exhaustion appear.
Natgas Video 03.12.21
I like the idea of it fading out somewhere near the $4.50 level, perhaps closer to the $4.75 level. On the other hand, if we break below the bottom of the candle for the trading session on Thursday, we should break down and head towards the $4.00 level. However, I don’t like the idea of following this market, as it tends to have a great deal of violent pullbacks in both directions. The market is still seeing a lot of volatility, but that makes sense to some extent as we are starting to get back to normal.
This is the January contract we are trading, so we are paying close attention to weather reports out of the US. The market is still very noisy, but at this point in time it’s nearing a change toward warmer months, so keep in mind that this market will sell out much faster than the weather will turn as we focus ahead on what appears to be a milder winter in America.
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