Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Natural Gas Forecast: Natural Gas Pulls Back on Tuesday

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • During my daily analysis of the commodity markets, the natural gas market has stood out, due to the fact that we had seen such a massive move to the upside on Monday.
  • Breaking above the $2.85 level was a huge victory, and now the question is whether or not we can continue to see that upward momentum?

Natural Gas Forecast Today - 6/11: Nat Gas Dips Tues (Chart)

When you look at the Tuesday session, we initially did try to rally, but we gave back those gains to test the $2.85 level. I think this is a situation where market participants will look at that massive candlestick from the Monday session and realized there is still a lot of bullish pressure underneath. After all, technical traders will look at this through the prism of a massive bullish engulfing candlestick. Furthermore, we have the 50 Day EMA sitting right in the middle of the candlestick, and that suggests that there are a lot of reasons to think that traders are jumping in and trying to take advantage of “value.”

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

Energy and its Meaning

All things being equal, it’s worth noting that energy has a major meaning for what happens next. While natural gas is highly sensitive to heating in the northeastern part of the United States, it’s also a form of energy that used to produce electricity, something that you should probably be paying close attention to. Underneath current trading, we do have the $2.65 level that has proven itself to be important multiple times, so as long as we can stay above there, I would have to assume that traders believe that there will still be energy demand in the United States, which of course means good things for the economy.

If we do break down below the $2.65 level, that would be a very ugly turn of events, especially considering that the market is likely to continue to see downward pressure, meaning that people believe that despite the fact that it is a cyclically strong time of year, the economy is slowing down. I would not expect that, but it would be an extraordinarily negative turn of events.

Ready to trade daily Forex analysis? We’ve made a list of the best commodity broker platforms worth trading with. 

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews