Natural Gas Price Forecast Video for 31.01.23
Natural Gas Technical Analysis
Natural gas markets continue to see selling pressure, as we are down yet again during the day on Monday. Quite frankly, this is a market that can’t find any footing whatsoever. There are a multitude of reasons for this, not the least of which would be that Freeport has reopened, and of course the winter has been relatively mild.
The supply is so abundant, that even though Texas is being told to prepare for a winter storm, it has had no effect on this market whatsoever. In this environment, we have massive capitulation, and it could set up for a nice long trade someday, but we clearly aren’t there now. In fact, this is a “fade the rally” type of situation, but at this point, I think you need to see some type of impulsive candlestick to even think about it. Short-term traders will probably continue to squash the first signs of any strength, but whether or not we get that remains to be seen.
Obviously, eventually we will see that, but at this point you have to let the market do what it’s going to do. I obviously would not want to chase this trade all the way down here, and it is simply a matter of waiting to see whether or not we get any opportunity. If you are already short on this market, there is not a lot to do at this point, other than perhaps maybe try to lock in some profit or slide your stop loss down even further. Once we do bounce, it could be very vicious, as this is overdone, but it’s also signaling that the band is cratering.
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This article was originally posted on FX Empire