Hey Natty Lovers!
Natural gas markets went back and forth during the trading session on Tuesday, as we continue to chop around just above is significant support. By doing so, it shows that the market is still trying to decide where we are going next.
The $2.25 level is an area that of course offers significant support as it had offered massive amounts of resistance during the month of August. At this point, the market looks as if it is trying to involve “market memory” in this area, as we start to head towards the winter season which of course will demand much more natural gas to heat homes in the United States and European Union.
You can see the past three years of this pattern highlighted in the squares and time intervals above.
At this point, we are below the 50 day EMA , so we are still technically in a downtrend but as we have seen, there is a significant amount of structure forming. If we can break above the 50 day EMA , then the market probably goes looking towards the $2.50 level, possibly even the 200 day EMA which is about $0.10 above there. Ultimately, natural gas continues to be oversupplied longer-term, but we do get that Winter bounce every year that we can take advantage of, so that’s essentially what I’m waiting for.
As a proxy, I am using the 50 day EMA as a buying opportunity. To the downside, I don’t have much interest in selling, simply because we are at such extended lower levels. The $2.00 level underneath should considered to be the “hard floor” of the market.
Quite frankly though, I would be surprised to see this market reach that area.
Stay ahead of the masses,
Seth Maniscalco
Founder, Crypto Wealth Coach LLC
Owner, Modern Wealth Management LP
www.CryptoWealthCoach.com/VIP
Natural gas markets went back and forth during the trading session on Tuesday, as we continue to chop around just above is significant support. By doing so, it shows that the market is still trying to decide where we are going next.
The $2.25 level is an area that of course offers significant support as it had offered massive amounts of resistance during the month of August. At this point, the market looks as if it is trying to involve “market memory” in this area, as we start to head towards the winter season which of course will demand much more natural gas to heat homes in the United States and European Union.
You can see the past three years of this pattern highlighted in the squares and time intervals above.
At this point, we are below the 50 day EMA , so we are still technically in a downtrend but as we have seen, there is a significant amount of structure forming. If we can break above the 50 day EMA , then the market probably goes looking towards the $2.50 level, possibly even the 200 day EMA which is about $0.10 above there. Ultimately, natural gas continues to be oversupplied longer-term, but we do get that Winter bounce every year that we can take advantage of, so that’s essentially what I’m waiting for.
As a proxy, I am using the 50 day EMA as a buying opportunity. To the downside, I don’t have much interest in selling, simply because we are at such extended lower levels. The $2.00 level underneath should considered to be the “hard floor” of the market.
Quite frankly though, I would be surprised to see this market reach that area.
Stay ahead of the masses,
Seth Maniscalco
Founder, Crypto Wealth Coach LLC
Owner, Modern Wealth Management LP
www.CryptoWealthCoach.com/VIP