TEHRAN (Iran News)- Natural gas markets have pulled back a bit during the trading session on Friday, showing signs of a bit of a “give back” heading into the weekend. This makes sense because we have had a nice bounce during most of the week against the most immediate downtrend. However, longer-term we are still in an uptrend and we are sitting on top of the 50 days EMA which does tend to attract a lot of attention. Because of this, I am looking to buy signs of support or momentum heading towards the upside. If we break above the candlestick from the Thursday session, we very likely will go looking to fill the gap above.
“Natural Gas Price Forecast – Natural Gas Pull Back to End Week”
Keep in mind that the market is likely to continue to favor higher pricing over the next month or so, as we are trading the January contract, one of the most heavily positive months from a demand standpoint. As temperatures drop in the United States and northern Europe, that will continue to drive the demand for natural gas higher. At this point, I have no interest in trying to short natural gas, because of the cyclical trade if for no other reason. If you look at the chart from a longer-term perspective, you can make an argument for a bit of a channel, which we have recently bounced from. Typically, we will see the market rally for a little further, perhaps into the second week of January, when we start trading the spring contracts and sell off yet again.
- source : FXEMPIRE