- The natural gas markets are still fairly noisy and might provide significant support, even though they have somewhat declined during Thursday's early hours.
- Remember that the market is extremely oversold, and this could be a major factor in this commodity over the long term.
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Thursday Noisy Overall
As you can see, we attempted to rally throughout Thursday's trading session but ultimately withdrew from the 20-day EMA. This appears to be a market that is generally attempting to establish some kind of, um, basis. Consequently, I believe you need to approach this by asking yourself, "Are we going to end up forming enough support to turn things around?" It's clear from the pair's longer-term charts that the $1.50 level beneath it represents strong support and a significant region of interest. Thus, I believe that a change of some kind is about to occur. The real question at this moment is whether or not it happens rapidly. In the end, I think investing in natural gas is a good idea, but I would never use leverage in such a transaction. This requires a position in an ETF or possibly a CFD, but make sure you comprehend the financing and, of course, adjust the science position appropriately.
It's not a good idea to fully invest in natural gas. It still has a ways to go before it persuades everyone that it wishes to ascend. Naturally, we are approaching a season that is usually quiet. All you need is a really bad winter storm or drillers who just give up. And at these prices, they will carry that out. Thus, it's probably just a matter of time until things start to turn around. But in the end, from a long-term perspective, I start to become really interested if we break down below $1.50. I believe there is a chance for some momentum trade to build up if we break above $2, since short covering would likely accelerate. If that turns out to be the case, there will probably be a lot of "FOMO trading" that picks up, which might quickly push natural gas prices upward. Assuming all else is equal, I believe we will keep seeing this through the lens of maybe a longer-term possibility.
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