The natural gas markets fluctuated throughout Monday’s trading day as we attempted to determine our next move. The $6.00 level should continue to be significant, if only from a psychological aspect. In the end, the $5.00 level below that is even more crucial, so keep that in mind. Because of this, it is highly possible that the market will continue to experience volatility as we decide whether or not the market will collapse or whether it will continue to rise.
The 50-Day EMA is positioned slightly above the 200-Day EMA on the chart, and it is quite possible that it will go below the 200-Day EMA, initiating the “death cross” that many investors are closely monitoring. However, although being extremely negative, it tends to lag the market, so it would not be surprising if the market ignored it.
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On the other hand, if the market were to break above these moving averages, it’s feasible that we might see a bit of a push towards the $7.00 level, and then breaching above that area may unleash even more purchasing pressure, perhaps reaching the top of the markedly large consolidation area. I do not necessarily expect this to occur, but I know that it very well could. In the previous several days, colder weather in the United States have increased costs, but the Freeport LNG terminal remains ineffective.
