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Natural Gas Technical Analysis
Natural gas markets have gapped lower to kick off the trading week on Monday, as low liquidity may have been an issue, but at this point, it is likely that we will eventually break down below the $6.50 level. Once we do, that could be the end of the uptrend, as the Freeport terminal not being able to produce LNG for the European Union is going to continue to cause issues as well. Furthermore, that huge candle from last week does suggest that the market will go lower.
Ultimately, any rally at this point in time should be an opportunity to short this market at the first signs of exhaustion, unless we were to somehow turn around and take out the $8.00 level. The 50 Day EMA sits at the $7.62 level and is starting to drop lower. I think ultimately this is a situation where the overall attitude of the market is starting to roll over, so I think it is only a matter of time before we get even more negativity.
If we were to break above the $8.00 level, that would obviously be a very bullish sign and could send the market back to the $9.50 level. At that point, then you are looking at a potential $10.00 target, but at this point, it looks like we are more likely than not we are going to continue to see a lot of negativity. Ultimately, the situation continues to evolve, but one had to wonder how much higher natural gas could go with that type of momentum that we had seen previously. Volatility will continue to be a major factor.
Natural Gas Price Forecast Video for 21.06.22
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This article was originally posted on FX Empire