Natural Gas Price Forecast – Natural Gas Markets Recover Initial Selling Pressure
Natural Gas Technical Analysis
Natural gas markets have fallen initially during the day on Thursday but underneath the $8.00 level, we found buyers that were willing to step in and pick this market up. By doing so, the market looks as if it is ready to continue trying to break to the upside but obviously, we are getting a bit extended. Alternatively, if we were to turn around a breakdown below the bottom of the candlestick for the trading session on Thursday, it opens up the possibility of a significant selloff. That does not necessarily mean that we would change trends, just that it could be rather quick.
In fact, it is not until we break down below the $6.50 level that I would consider this trend possibly changing, and even then I think you have to look at the fundamental situation. Obviously, natural gas has been like a wrecking ball for anybody who has shown an interest in shorting it for a bigger move. That being said, it is probably only a matter of time before we see a lack of demand jump into this market and cause some issues.
As things stand right now, that does not look to be the case, so I believe we are more likely than not going to see a “buy on the dips” type of mentality going forward. Ultimately, this is a market that I believe will continue to be very noisy, but that is typical for this market as it is one of the smaller ones. Position sizing is crucial in all markets, but it is especially true in this one as it gets out of control rather quickly.
Natural Gas Price Forecast Video 20.05.22
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This article was originally posted on FX Empire
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