Natural Gas Price Forecast Video for 30.01.23
Natural Gas Weekly Technical Analysis
I shudder to think how many people have lost a fortune trying to buy natural gas on the way down. That being said, we are probably more likely than not going to see some type of bear market rally, and therefore I think you cannot short this market all the way down here. If you are already short of the market, that is one thing, as I see a significant amount of potential resistance near the $3.50 level. That being said, if the market were to break above there, then it will cut off a massive bear market rally.
Any rally at this point in time will more likely than not just be a bear market rally, because sooner or later we will get some type of winter storm that drives of demand. That being said, I think it’s probably more or less going to be a situation where you are probably going to make your bones by fading signs of exhaustion after a sharp rally. Ultimately, I think the “ceiling” on any rally will be somewhere near the $5.50 level, assuming that we even have the momentum to get to that market.
All things being equal, I believe that the $2.46 level is a significant support area, so we are getting rather close to an area where about should show up, now all we need is some type of catalyst to get moving. A short covering rally could be nasty in this market, due to the speed of this selloff that we had seen come back into the market after that massive rally.
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This article was originally posted on FX Empire