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Natural Gas Technical Analysis
Natural gas markets have fallen a bit during the trading session on Thursday to reach toward the $6.50 level again. This is an area that has been massive support multiple times, and therefore I think it is only a matter of time before we break through it. The way we are pounding away at this level, it’s likely that it’s going to be sooner rather than later. After all, we had formed a couple of hammers, but the insistence on the sellers will eventually prevail. Rallies at this point in time should end up being buying opportunities, as we have seen so much negative pressure.
Looking at the overall trend, you can see that we had recently formed a massive red candlestick, and if you were paying attention back then, you know I had talked about how candles like that do not happen in a vacuum. We had obviously seen a major shift in attitude, and it makes sense that at this point in time natural gas does fall, mainly due to the Fremont terminal not being able to export LNG to the EU, forcing the Europeans to finally acquiesce to the fact that they are held hostage by Russian gas. Germany is going back to coal, at least for the time being.
At this point, we can start to look at the Henry Hub contract as an American futures contract again, which makes quite a bit of sense considering that’s how it normally plays out. While natural gas markets may remain elevated from a historical standpoint, the high has been put in for the time being. In fact, we are down almost 30% in the blink of an eye.
Natural Gas Price Forecast Video for 24.06.22
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This article was originally posted on FX Empire