Natural Gas Technical Analysis
Natural gas markets have gotten crushed during the trading session on Tuesday to break down and test the $7.00 level. While I would not go so far as to say this is the end of the trend, it is obvious that this is a massive bearish engulfing candlestick, or something close to it. The question now is whether or not there is more momentum with this type of negativity? I think that is more likely the case than not, but as you know, I have been waiting for a nice shorting opportunity. It is confirmed in my opinion once we get below that $6.50 level.
I warned that even if we continue to go higher, we may get a day like this. Within the first couple of hours, we have seen this market lose $0.75 rather quickly, and quite frankly there is nothing on this chart to suggest that we will not continue to go lower. It will be crucial to pay close attention to this market, but it is also probably worth noting that this is the first full day of liquidity, as Monday was a carryover from Easter for a lot of major central banks around the world as well as institutional banks.
It will be interesting to see the market reaction to the $6.50 level, as it was such a major area previously. The market closing towards the bottom of the candlestick for the session does suggest that we are going to test that area, but even if we get down to that area, I will wait to see what the daily close tells us. Because if we do break down from here, then it is likely that we have quite some distance to go.
Natural Gas Price Forecast Video 20.04.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Source: https://finance.yahoo.com/news/natural-gas-markets-clobbered-154511743.html