Natural gas is on the move

Energy markets are on the move: volume in the largest oil ETF of the United States (USO) rose to a new peak in 2022. CME Group took a similar action for WTI Crude oil futures. The situation was fueled by geopolitical escalation in the Middle East.

Natural gas has developed a strong momentum, getting back to $3, and if it holds this level, it will complete the “cup-and-handle” pattern, which points to the continuation to the upside, up to $4 area and above.

The current price is also above the 20, 50, and 200 moving averages, indicating a “price discovery” regime. If XNGUSD doesn’t correct itself, it may develop another sharp spike upward.