Yahoo Finance Natural Gas Price Forecast – Natural Gas Markets Take a Breather
Natural gas markets have rallied just a bit during the trading session on Tuesday, stabilizing a bit after the massive selloff on Monday. The $3.75 level seems to be offering a little bit of support at the moment, but at this point I think more focus probably comes into the picture on the gap above that has yet to be filled. In that scenario, is very likely that there should be quite a bit of selling pressure, especially as the 200 day EMA sits just above it. Because of this, I do not like the idea of trying to buy this market, rather I like the idea of fading rallies.
NATGAS Video 08.12.21
Temperatures are projected to be warmer than usual in the United States for most of the winter, and of course this is the January contract that we are trading. In other words, demand for natural gas probably be seen as much less than initially thought. If that is the case, then it is very likely that we will continue to see natural gas struggle, and when we go to fill that gap, I will be waiting. I do not think that natural gas has the ability to make a fresh, new high, and I think that the $6.50 levels almost certainly the highs for the winter.
To the downside, you could make an argument for $3.00 as the measured move of the triangle does suggest that. Furthermore, the three-pointer zero dollars level is an area that has been important more than once, so it should not be a huge surprise to see the market re-visit that level. If it does, I would anticipate a certain amount of psychological support coming into the picture.
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This article was originally posted on FX Empire
