Natural Gas Price Forecast – natural gas markets fall to close the week
Natural gas markets have fallen a bit during the trading session on Friday, reaching down towards the $2.92 level as I record this. The market continues to find a lot of resistance closer to the $2.97 level, which of course is close to the psychologically important three dollars handle that has been so resistive for quite some time. I think that a lot of people are trying to square their positions out ahead of the weekend, because this market does tend to take off in one direction or the other quite rapidly, and therefore people are willing to close out and flatten out their books.
I also recognize that the $2.90 level has been supportive, so if we break down below there we could accelerate to the downside. I still believe in selling rallies as they occur, because quite frankly the supply of natural gas outweighs the demand by a wide margin. That being the case, I will patiently await some type of rally that I can take advantage of to start shorting. Otherwise, I will just sell below the vital $2.90 level if it is retested and shows the resiliency and resistance. The US dollar is falling, so that is not a factor in this market right now, so I believe this is simply a technical move. When you look at the weekly candle’s, it does certainly look as if we are running out of upward momentum in this market.
NATGAS Video 27.08.18
This article was originally posted on FX Empire