Oil & Gas - Energy - Commodities - Resources (OILBRENT)

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Natural Gas Look Ready to Continue Bullish Momentum
By: Christopher Lewis | July 29, 2021

• Natural gas markets have rallied just a bit during the trading session on Thursday but had formed a nice-looking hammer during the Wednesday session.

Natural gas markets have rallied a bit during the trading session on Thursday to show signs of life again and threaten the $4.00 level. If we can break above the highs of the Wednesday hammer, that would be a bullish sign and could send this market much higher. When you look at the overall attitude of the market, it has been bullish for some time and of course we had broken out of a major consolidation area. The $2.40 level underneath was massive support while the $3.40 level was massive resistance. That area measured for a $1.00 move, which extrapolates to the $4.40 level.

Speaking of the $4.40 level, it is also an area where we had seen a lot of massive resistance previously. Furthermore, there is a bullish flag that we had broken out of recently and have now just retested, so it should signal that we are going to go towards the $4.40 level based upon the “measured move.” All things been equal, this is a market that I think continues to go much higher due to the heat wave in the western part of the United States, driving up quite a bit of demand.

Ultimately, that he wave seems as if it is going to be somewhat unforgiving, so I think that this move will continue going forward. Given enough time though, once that he wave dissipates a bit, natural gas markets may be the first place in the commodity sector that you see weakness.

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