Natural gas price forecast – Natural gas breaks above the 50-day average

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Natural gas markets have rallied significantly during Friday’s trading session, breaking above the 50-day average and breaking the level at $ 5.25. This tells me that he looks ready to continue on his way up although I think he would have to cut through the shooting star pattern from last week to be able to say he has a clear path.

The important thing is that it will continue to be interesting to buy after the falls due to the fall in temperatures and the rebound in demand for heating, although there is concern about the issue of the reopening of the economy. In any case, I think that in the next month or so, this market will be one of the best performing.

Keep in mind that the markets continue to have a lot of support below, especially near the level at $ 4.75, also as I said, temperatures are falling again in the United States and that helps to boost the market. Normally natural gas moves based on what the latest weather forecast says so you should also keep that in mind.

The summary would be that we are in a market where there will be a lot of noise but in which I expect some bullish bias in the coming weeks. We will eventually start trading the futures contracts that expire in the spring but that has not yet come, so do not expect prices to rise. Finally, I recommend that you be careful with the size of your positions because many erratic movements tend to be registered.

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This article was originally posted on FX Empire

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