Natural Gas Markets Look Ready to Continue Consolidation
Natural gas markets initially dipped during the trading session but then turned around to find signs of support. That being said, the market looks as if it is ready to reenter the consolidation area that we have made over the last 48 hours, which makes quite a bit of sense as we see a major storm in the United States driving up demand, at least short term. Because of this, I think this is a market that you need to pay close attention to but given enough time we will have to make a bigger decision. That bigger decision for me is more than likely going to be lower.
NATGAS Video 19.01.22
This does not mean we cannot bounce in the short term, and quite frankly it looks like we probably will. The $4.75 area is resistance from what I can see, especially when you look at the area as being the bottom of that massive triangle that I have marked on the chart. It has been tested already, so whether or not we tested again is a completely open question but the think that natural gas to suddenly just going to rip through all of that resistance easily is a bit of a farce.
Natural gas is a market that almost certainly will continue to see selling pressure, due to the fact that there is plenty of it, and quite frankly most people tend to forget that this is a US market, meaning that the issues in Asia and Europe have nothing to do with what is going on here. Unfortunately, I have even seen well respected professionals make that mistake.
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This article was originally posted on FX Empire
