Natural Gas Continues to Show Bullish Momentum
By: Christopher Lewis | July 20, 2021
• The natural gas markets have rallied again during the trading session on Tuesday as we continue to see the heat wave in the western part of the United States Dr. up demand for natural gas.
Natural gas markets have gone back and forth during the course of the trading session but have ultimately decided to go higher to break out above the recent resistance barrier and the $3.80 level. This was an area that cause quite a bit of resistance over the last several weeks, so it does make a certain amount of sense that we would finally break through it as the upward momentum had been so resilient. Furthermore, we have massive amounts of heat to deal with in the western part of the United States that is relatively relentless, and that drives up demand for natural gas to cool off forms.
In general, commodities have been very strong as of late, so this is a bit of a “knock on effect” over here as well. When you look at the larger consolidation area that I have marked on the chart, you can see that we had been bouncing around between $2.40 and $3.40 previously. That measures for a one dollar move, which means $4.40 above. Furthermore, we have just broken out of a bullish flag, which also measures for a move to the $4.40 level so it all ties together quite nicely. In other words, we not only have a significant amount of momentum, but now we also have technicals working for us as well.
I do think that eventually we break down due to a lack of demand, and the bubble pops in the commodity world in general. If that is the case, natural gas will more than likely be the first place you see it. Regardless, at this point it is difficult to short this market. Read Full Story »»» DiscoverGold