Natural Gas Price Forecast – natural gas markets continue to drift lower
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We’ve been in a consolidation for some time, and I think it’s only a matter of time before we go down to the $2.60 level, which is the bottom of the overall consolidation. The strengthening US dollar of course is putting pressure on commodities overall, and I think that the level will be tested again. I don’t expect it to be broken through, but I think that we will continue to see the market attracted to that level. I believe that the $2.85 level above offers a significant resistance, and of course the $3.00 level is the top of the longer-term consolidation.
Market participants continue to sell rallies as they go forward, and the 50 EMA on the hourly chart has certainly been reliable for downward pressure. I believe that the market should continue to see a lot of noise, but specifically a lot of bearish pressure. Over the longer-term, I believe that rallies continue to be selling opportunities, and I have no interest in trying to buy natural gas anytime soon. This will be especially true if we get some type of economic slowdown, because that of course will drive the demand for energy, which by extension will drive demand for natural gas as it is not only used for heating but is used for power overall for larger industry in the United States. At this point though, I think we continue to sell signs of exhaustion above, which gives us an opportunity to take advantage of the trend.
NATGAS Video 17.07.18
This article was originally posted on FX Empire