Natural gas markets have initially tried to rally during the trading session on Wednesday but gave back the gains near the $2.80 level. At this point, it looks like the market is ready to enter back into the consolidation area that we have been in previously, reaching down towards the gap underneath. The 200 day EMA sits at the $2.48 level, so I think that could be where we go, if we do pick up a little bit more in the way of negativity, and of course if weather starts to turn warmer. After all, this market tends to move based upon the most recent weather reports coming out of the northeastern part of the United States.
NATGAS Video 14.01.21
Looking at the overall attitude of the market, we have been falling for a while, and it does suggest that we are going to look for selling opportunities due to the fact that the warmer temperatures are coming, and of course it is going to drive down demand overall. That being said, I think the market probably would take off to the $3.00 level if we can break above the shooting star from the Tuesday session, because it would show a significant amount of momentum and strength of course.
That being the case, the market is likely to pick up a bit of interest. That being said, the $3.00 level above is a gap that should cause significant resistance as well. Either way, I have no interest in buying natural gas, it is far too late in the year to start buying into a bullish case scenario. After all, demand will drop in the next few months.
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