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Natural Gas Weekly Technical Analysis
Natural gas markets have gone back and forth after initially gapping higher to kick the whole thing out. By doing so, the market looks as if it is going to continue to see a lot of back-and-forth, and perhaps an attempt to break above the $7.00 level. However, it’s very unlikely that we see anything other than a short-term bounce, because quite frankly the demand for natural gas is not going to be as high as once thought.
The European Union will not be looking to import as much natural gas as people had thought they could, and then you also keep in mind that there are a lot of concerns about the global economy slowing down. In other words, demand could take a bit of a hit as well. The market will continue to be noisy, but I am looking for signs of exhaustion that I can start shorting more than anything else. If we break down below the little double bottom near $5.37, then it’s likely that we go lower. At that point, I would anticipate that natural gas would threaten the $5.00 level.
Any move below the $5.00 level will open up the floodgates, and send this market much lower. Ultimately, this is a market that I think eventually does that exact move, but it may take some time to get down there. I have no interest in buying natural gas anymore.
Natural Gas Price Forecast Video for the Week of 18.07.22
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This article was originally posted on FX Empire