Natural Gas Technical Analysis
Natural gas markets have gone back and forth during the course of the trading session on Wednesday, as it looks like we are running out of a bit of momentum. Ultimately, the market looks as if it is going to try to use the $8.00 level as support, and if we break down below there, we may have a little bit more of a significant pullback.
Regardless of what you think about the market, it is obvious that it has bounced quite drastically and in a very short amount of time. Because of this, the market more likely than not will continue to cause a lot of noisy behavior, and perhaps have to drop in order to find buyers. Ultimately, the $6.50 level is the “floor in the market” and the trend, so therefore you need to keep that in the back of your mind.
On the other hand, if the market was to break above the highs of the trading session on Wednesday, then the market could go looking to the $9.00 level. Breaking above the $9.00 level opens up the possibility of an even bigger move, as we have seen so much buying activity. Nonetheless, I think after six days in a row of gains, it makes more sense that we pull back than anything else. I do not know that I would necessarily short this market unless you have the ability to sit in front of the charts all day and perhaps base your trading position on short-term charts and therefore be as reactive as possible with this volatility.
Natural Gas Price Forecast Video 19.05.22
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This article was originally posted on FX Empire