The natural gas market had to pull back a bit during its trading session on Tuesday, reaching down towards the $2.75 level. This area is one that buyers have been very stringent about, setting the market into a place where it would likely continue to see a lot of volatility, presenting what could be a “floor” in the interim.
The current trading action would be the same that has been seen for some time which is selling signs of exhaustion at higher levels.
The Market currently seems to continue to show selling pressure above, basing upon the oversupply of natural gas in the United States and Canada which could do more than just fuel those countries.
At last, the market will surely have a significant pop with enough time given as the fluctuations for the short term in weather. It has already been presented with a bit of a pop due to the cold snap in the United States play out, and later getting sold off near $3.25.
The market would probably have another rally, getting sold off, and if it breaks down below the $2.75 level, the next possible target would be the $2.50 level underneath, presenting more support.
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