- The natural gas market did fall initially during the trading session on Friday, but it looks to me like we are trying to turn things around and show signs of life.
- Ultimately, this is a market that given enough time should continue to see plenty of buyers back in this picture to try to push things towards the $3 level.
- If we can break above the $3 level, then we could go looking at the 50 day EMA.
Breaking above the 50 day EMA opens up the possibility of a move to the 200 day EMA at the $3.22 level. We did fill the gap here from the rollover into the November contract and now the question is will we get a little bit of momentum? We have the first candlestick I'm looking for support at this level, now we need a little bit of momentum to the upside. If we can get that momentum, then I think you've got a real shot at the market to go much higher.
Breaking Below the Rollover Gap
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Ultimately, if we do break down below this gap, then you could be looking at a significant uptrend line offering support. The uptrend line, of course, is something that we've been paying attention to since last February. So, it is something that market participants have been playing paying attention to and acknowledging and I think that will continue to be the case. We are about 10 days away from rolling over into the next contract, which of course is December and December is a very cold month, meaning demand should pick up. So, I'm a buyer actually, although I would do so with very low leverage. I'm not looking to risk a ton of money in this market as it could be very volatile over the next couple of days, but eventually I expect to see it shoot to the upside, perhaps to the $3.50 level, maybe even the $4 level.
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