Natural Gas Price Forecast Video for 27.02.23
Natural Gas Weekly Technical Analysis
Natural gas markets have fallen a bit during the trading week to reach down toward the $2.00 level. That being said, the area is a large, round, psychologically significant figure, and of course a lot of people are going to pay attention to it. The fact that we are forming a bit of a hammer does suggest that perhaps we are going to see a little bit of a bounce. If we do bounce from here, it makes a certain amount of sense that we would see an attempt to recover. If we can break above the $2.60 level, then it’s very unlikely that we won’t at least try to get to the $3.00 level.
When you look at the daily chart, the 50-Day EMA is sitting just above the $3.00 level, so it all ties together quite nicely. Quite frankly, I could see this market going as high as $4.00, and not changing much. We are heading in the springtime and there are a lot of concerns as to whether or not there will be enough global demand as the world’s economy slows down.
As long as that’s a threat, it’s very difficult to get overly excited about natural gas at this point. I’m waiting for signs of exhaustion that I can sell into, be it on either the weekly or the daily chart. The weekly chart shows just how soft this has been, and I do think that sooner or later we need some type of correction. However, as far as a new bullish market is concerned, that would be a stretch.
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This article was originally posted on FX Empire