FX.co ★ Natural Gas (NG)

This is not a long-term situation, but it will bring in a bit of demand in the short term. This time of year is what is known as shoulder season, and it typically is fairly weak. The natural gas market is still somewhat volatile, to put it mildly, although there has been some recent upward momentum. I will be keeping a careful eye on this. The natural gas market is still somewhat volatile, to put it mildly, but there has been some recent upward momentum, which makes some sense given the rising temperatures in the US over the past few days. If we have enough time, I believe the market will likely present us with a good shorting opportunity, and I will be watching for signs of tiredness to begin selling once more, as I always do at this time of year. Since natural gas can roll over quickly, I'm not interested in purchasing it right now. A move to the 50-day EMA and potentially even the $2.60 level is possible below the $3 level. The 200-day EMA provides a substantial barrier to the upside at $3.29. This market is still significant, in my opinion, and it is incredibly challenging for natural gas to make a longer-term upward move given the surplus that exists in the US. I will simply sell it at a slightly higher level if it rebounds from here, which would be fantastic. I'm keeping an eye out for indications of fatigue; we haven't really had any follow-up on that yet, but the next few days should provide that chance. The biggest obstacle to making money in this market right now is probably just having patience.

Natural Gas Price Analysis – Natural Gas Continues to Rise Natural gas prices are still rising on Wednesday due to the continued lack of demand, but in the near future, the USA's warmer weather will have an impact. Although the natural gas market was a little raucous early on Wednesday, I do believe that we are beginning to get a little overextended at this point. Given that the supply is plentiful in the US, as is nearly always the case, the 200-day EMA above is a sign that many people, including me, will be watching as a potential ceiling because this time of year is likely to be bearish going ahead. However, few people will also consider the fact that the US isn't particularly hot right now. Longer term, there won't be the kind of demand required to reduce that supply, but in the coming days, there will be. To begin selling, all I'm looking for is indications of fatigue. I'll be the first to acknowledge that the natural gas market has increased more than I anticipated, but in my opinion, this only gives us more leeway to begin shorting. If all else is equal, I do believe that we should revisit the $2.60 level, possibly much lower. However, there is a lot of seasonality here that you simply cannot overlook. I want to start selling into a long wick followed by a downturn. I will need to be patient in this market, but I will sell when I can. But I think ultimately this is a market that I think continues to see a lot of volatility.