The natural gas markets have moved very little during Tuesday’s trading session, and more significantly, I do not see any real tendency for prices to rise at this time. In light of this, it is likely that the market will continue to exhibit a great deal of erratic behavior, resulting in a great deal of data to sift through.
There is a gap slightly above, and these gaps are frequently filled on futures markets. Because of this, I believe it is more probable than not that it will stage a modest comeback, but I also believe that sooner or later we will observe signs of tiredness that we can exploit. This is especially true when the 200-day exponential moving average (EMA) is barely above. In this instance, the issue is just fading rallies.
You should only trade with capital that you can afford to lose while trading derivatives. The trading of derivatives may not be suitable for all investors; thus, you should ensure that you fully comprehend the risks involved and, if necessary, seek independent counsel. Before entering into a transaction with us, a Product Disclosure Statement (PDS) can be received through this website or upon request from our offices and should be reviewed. Raw Spread accounts offer spreads beginning at 0 pips and commissions of $3.50 every 100k traded. Spreads on standard accounts begin at 1 pip with no additional commission fees. CFD index spreads begin at 0.4 points. This information is not intended for inhabitants of any country or jurisdiction where distribution or use would violate local law or regulation.
If we break below the bottom of the candlestick for Tuesday’s trading session, the probability of a move down to the $5.50 level, from which we rebounded earlier, becomes possible. When this threshold is breached, the floodgates are opened to significantly lower prices. I’m uncertain as to whether or not it occurs immediately, but it appears that it could occur soon.
In order to become bullish, a move above $7.00 would be required, and even then, I feel there will be much technical resistance above. Due to this, I believe that the easiest trade is to simply short signs of tiredness when they come, so that we can perhaps capitalize on a short-term rally within the next day.
