Natural gas markets retreated slightly during Wednesday’s trading session, just as we did on Tuesday. The Tuesday candlestick is a hammer, which of course shows that there is also a certain amount of support and stability. That being the case, keep in mind that it is probably only a matter of time before we see some type of rebound, especially since the market has been in such a strong uptrend for several months.
NATGAS video 14.10.21
The story of a production slowdown is something everyone is familiar with, as Hurricane Ida hit the Southeastern United States and of course we had floods, heat waves and everything else. Currently, the European Union cannot get enough natural gas, and while the Henry Hub version of natural gas in this chart does not necessarily sell to the EU, the reality is that it is still putting pressure on the market. rise in this market.
If we were to activate a breakout under the hammer from Tuesday’s session then the market should look to the 50-day EMA which sits just below the $ 5.00 level. The market breakout above the previous session’s hammer top could open a move towards $ 5.75, possibly even the $ 6.00 level. We’ve been in an uptrend for some time, so I don’t see that changing anytime soon. This does not mean that we are shooting in the air, but it has to be assumed that the trend will continue.