Beginning of the week on the markets has been rather calm so far. Indices from Asia-Pacific moved lower but scale of declines was moderate. Similar picture can be seen at the beginning of the European cash session. However, there is one market that is seeing extraordinary moves and this is US natural gas (NATGAS). NATGAS launched a new week with a massive bullish price gap and is now trading almost 9%, after trimming some gains. New forecasts pointing to colder weather in the United States in the days ahead are to blame. Price tested 7.00 resistance zone, marked with 61.8% retracement of the recent major downward move, at the start of trading but has failed to break above. A lot will now depend on whether bulls make another attempt and whether they succeed. A break above would brighten the outlook for buyers and could herald a move towards recent highs. On the other hand, it should be noted that 7.00 is a good technical spot for reversal and move back towards price zone ranging between 6.30 mark and 38.2% retracement.
Source: xStation5
