Natural Gas Weekly Technical Analysis
Natural gas markets initially tried to rally during the course of the week but found quite a bit of resistance near the $8.00 level. The market has been parabolic for some time, and now it is very likely to retest that area underneath to see whether or not the uptrend can be sustained. As long as we can stay above $6.50, then it is likely that there is still at least some bullish pressure in this market.
However, if we were to break down below the $6.00 level, then the market is likely to go much lower, perhaps reversing the entire trend. At this point, if we were to break down below there, then I think it will accelerate an already volatile move. Keep in mind that the Europeans cannot import more LNG than they do right now, so at this point, it makes sense that we would see a lot of noise, and therefore I think it is going to be a market that you need to be very cautious about your position size.
I believe the next weekly candlestick could give you a major heads up as to where we are going next, and therefore it is likely that we will continue to see a lot of jittery nerves over the next week or so, but eventually, we will make a longer-term decision. Quite frankly, natural gas going much higher than it is already is going to cause major issues. Whether or not that can continue is a completely different question, because we had gotten so far out of whack.
Natural Gas Price Forecast Video 25.04.22
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This article was originally posted on FX Empire
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