Natural gas markets have broken down significantly during the trading session on Wednesday, reaching down towards the $2.20 level. This is a market that is very negative, but we are in a longer-term downtrend. At this point, it’s almost impossible to imagine a scenario where I would be a buyer, but rallies should be a nice selling opportunity on signs of exhaustion. The $2.20 level underneath is massive support, and if we can break down below there and maybe more importantly the $2.15 level, then the market probably goes down to the $2.00 level, an area that is a large, round, psychologically important figure. With that, it’s very likely that we will continue to see choppy but negative attitudes.
NATGAS Video 25.07.19
With the heatwave over in the United States and the fact that we are still a while away from getting cold temperatures that will drive the price of natural gas higher from a fundamental standpoint. At that point in time it’s very likely that I will be a buyer for a couple of months, but right now it’s nowhere near that timeframe so it’s still a “sell on the rallies” type of situation. Ultimately, this is a market that will be attracted to the $2.00 level, but I think that is probably where the bottom comes into play.
To the upside, the 50 day EMA is also resistance at the $2.40 level, so I think that would probably be about as far as this market can move to the upside in the short term.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Forecast – Gold markets fall to test trendline
- Silver Should Pause At $16.75 Before Next Rally Starts
- Forex Daily Recap – Fiber Looking for Recovery as ECB Plans for Monetary Easing
- Gold Price Prediction – Prices Slip Following ECB Decision
- AUD/USD Price Forecast – Australian dollar stabilizing
- Natural Gas Price Forecast – Natural gas markets show signs of life on Thursday