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Natural Gas Weekly Technical Analysis
Natural gas markets have gone back and forth during the week, showing signs of both buying and selling pressure at times. The candlestick is relatively neutral, and it does suggest that perhaps a pullback could be coming. However, it’s not till we break below the $8.00 level on a daily close that you can even have that argument, and quite frankly energy has been on fire as of late. We could just as easily break above the top of the candlestick and go looking to reach the $10.00 level.
Yes, the market is a bit overstretched at this moment, so a little bit of sideways action may make more sense than anything else. If you are a longer-term trader, the risk to reward simply is not there. However, if you find yourself bearish, the risk to reward could be rather large. If you are bullish on natural gas, you need to look at this through the prism of a daily chart, or perhaps even a lower timeframe to buy dips. If you think that we have gotten close to the top, then you start to look at the weekly chart for triggers.
I believe that the next move is probably sideways than anything else, as we are starting to run out of momentum. This has been a momentum-driven market, and at this point, we are starting to see various European countries doing workarounds on sanctions, as members of the EU continue to pay for natural gas in rubles, through backdoor channels.
Natural Gas Price Forecast Video 13.06.22
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This article was originally posted on FX Empire