Natural gas markets continue to look a bit soft in general, forming a relatively negative candle stick. At this point, I suspect that this simply means that we will continue the longer-term downtrend which of course makes sense. If you remember my analysis from yesterday, I pointed out that there were a couple of long wicks on candle stick from last week that we needed to break above to show any real signs of strength, and since we failed it there, then it’s likely that we will continue to go lower. I think that the $2.25 level will be a short-term target, and then the market will probably go looking towards the $2.20 level after that.
NATGAS Video 24.07.19
To the upside we still have plenty of resistance, not only based upon those wicks but also the 50 day EMA which is closer to the $2.40 level. Given enough time, it’s likely that we will find reasons to short this market yet again, as we are still only rolling over to the month of September. We aren’t quite there yet, but eventually we should find reasons to take advantage of the cyclical aspect of this market, but it isn’t time yet. Selling rallies continues to be a major way to play this market, so having said that it’s likely that the market will eventually try to go down to the $2.00 level underneath. That’s a large, round, psychologically significant target, and of course is a very juicy level to aim for.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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