Natural Gas Price Forecast Video for 27.02.23
Natural Gas Technical Analysis
Natural gas markets have rallied a bit during the trading session on Friday, as we are now threatening the $2.50 level. That being said, natural gas continues to be very soft to say the least, and it looks as if the longer-term downtrend is nowhere near turning around. There is a lot of noise between $2.50 and $2.60, so I would anticipate that there is the possibility that the market fails to continue going higher. However, if we do break above the $2.60 level, then it’s possible that we could go look into the $3.00 level, which of course is a large, round, psychologically significant figure.
Furthermore, the 50-Day EMA is likely to meet the market near the $3.00 level if we do get to that area, and I think that comes into the picture as well. At this juncture, I believe this is a market that you fade on signs of exhaustion, and therefore I’m looking for long wicks to the upside to take advantage of. We may or may not get the perfect set up, but unless you are a short-term momentum driven trader, and somebody with a lot of risk tolerance, you should not be buying this market.
Keep in mind that we are heading into the springtime, and demand will start to drop for natural gas, as heating becomes less of an issue. Furthermore, you also have a lack of industrial demand if we are in fact going to continue to see the global economy slow down. With that in mind, I believe that this remains a “fade the rally” type of market.
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This article was originally posted on FX Empire