Natural Gas Technical Analysis
Natural gas markets initially rallied during the trading session on Friday to touch the $ 6.50 level. This is an area that seems to be a bit difficult to overcome, but it certainly looks as if traders are willing to press the market higher and higher. Whether or not it can actually continue to break out is a completely different question, but the candlestick does look like it is trying to figure out whether or not we can continue to see this momentum.
Ultimately, if we break down below the bottom of the candlestick, we could go looking toward the $ 6.00 level, and then possibly the $ 5.50 level. Alternatively, if we were to break above the top of the candlestick for Friday, that could lead to a massive “blow-off top”, or some type of very dangerous spike. Ultimately, this is a very difficult market to go long in at the moment, especially as it is so overbought. That does not necessarily mean that you should short it right away, we need that trigger to happen in order to make sense of shorting. Eventually, inventories will get filled, especially as temperatures start to warm up again.
The market continues to see a lot of upward volatility, but parabolic markets like this tend to break down. If you wanted to see some type of example, take a look at the WTI Crude Oil market. To think that we can continue this type of momentum is reckless, to say the least, so it is a matter of being patient.
Natural Gas Price Forecast Video 11.04.22
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