In This Article:
Natural gas markets have rallied during the trading session on Wednesday only to show plenty of signs of exhaustion at the same place we had pulled back from during the previous day. That being said, the market looks as if it is ready to roll over again, and it certainly would make quite a bit of sense as it looks like we are reentering the previous consolidation area. The 200 day EMA also is in this neighborhood, so that of course suggests negative pressure. If we break down below the bottom of the candlestick during the trading session on Thursday, then the market is very likely to continue going lower.
NATGAS Video 28.01.22
Underneath, the $3.50 level is a support zone that a lot of people will be paying attention to, and as a result it is likely that we would see a major push underneath there given enough time as we build up momentum to head into warmer temperatures. All things being equal, if we break above the top of the candlestick from the last couple of days, I will not be a buyer, I will simply wait for an opportunity to start selling at higher levels. All things been equal, when you look at this chart you can see that there is a massive descending triangle above that has a “measured move” all the way down to the $3.00 level. In fact, that is an area where we have seen a lot of equilibrium in this market over the longer term, so I like that target lot. Look at rallies as opportunities to sell from higher levels.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire