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Natural gas markets widened to kick off Tuesday’s trading session and push the market back above the $ 6.00 level. That being said, the market appears to want to threaten the highs reached just a few weeks ago and swing higher. After all, the European Union simply cannot get enough natural gas to fuel itself for energy at this time. If this is to be the case, the market will likely experience more near-term upside pressure than anything else, so pullbacks would definitely be a buying opportunity.
NATGAS video 06.10.21
All other things being equal, I believe there is a huge “market bottom” at the $ 5.00 level as the 50 day EMA approaches that level. That doesn’t necessarily mean we’re going to get there anytime soon, but I have it in mind. The $ 5.50 level comes into play as well, as we’ve seen a lot of buying pressure in this area recently. Frankly, with the colder temperatures coming over the next few months or two, this will also push the futures market higher, and if we see a really cold winter, it could have ramifications in this market as we are already stretched. when it comes to sourcing.
You also have to keep in mind that North America is not at all grappling with the issues that the European Union or China have with natural gas, so for now I think you have to choose. your points, but it still seems like a ‘buy on trough’ type of situation.
For an overview of all of today’s economic events, check out our economic calendar.
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