When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. The 200 day EMA is rising, so that should offer a bit of support, but quite frankly we need to start looking at the possibility that we have already seen the highs for the winter. If we break down below there, then the market is likely to go looking towards the $4.14 level where the 200 day EMA currently sits. To the downside, the market will more than likely test the $4.75 level for support yet again, and therefore argue for the idea of some type of supportive behavior.

That being said, the 50 day EMA could cause a little bit of a short-term problem, so I would anticipate that there would be a little bit of a hesitation in that area even if we do take off to the upside. That being said, the market is likely to continue to go looking towards the 50 day EMA on any signs of bullish momentum, which would make a certain amount of sense considering that it is so cold. Natural gas markets have rallied a bit during the course of the trading session on Tuesday to test the top of what could be a rising wedge.

Descending wedge