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Natural Gas Price Forecast Video for 17.04.23
Natural Gas Weekly Technical Analysis
Natural gas markets initially tried to rally during the trading week but gave back all of the gains to sit right on the $2.00 level. This is a cyclically weak time of year, so it’s not a huge surprise to see that there was no staying power in the rally. Ultimately, I think this is a situation where you see a lot of volatility on short-term charts, but longer term traders and I have to wait for the Europeans to step back into the market and start filling their tanks back up.
The shape of the candlestick is an inverted hammer, so from a technical analysis standpoint, a break above the top of it would be a very bullish sign, opening up the possibility of a move toward the $3.00 level. Maybe that’s what happens, as I do believe that the $3.00 level will be a significant ceiling in the market for the warm months. This does not mean that I would go “all in” if we do break above there, just that we might have a short-term trade that offers a little bit of profit.
Alternatively, if we break down below the bottom of the candlestick, then we will more likely than not go down to the next support level, which is the $1.80 level on short-term charts. In that scenario, then it becomes a little easier to buy the market, because quite frankly, your downside is somewhat limited. At this point though, I don’t like the idea of selling due to the fact that there aren’t that many people left to sell this market.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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