Yahoo Autos Natural Gas Price Forecast – Natural Gas Markets Showing Signs of a Top
Natural gas markets have gapped lower to kick off the trading session on Friday, before rallying to fill that gap. By doing so, we read into more resistance, and have since formed a bit of a shooting star. Because of this, I believe that the natural gas markets will show a bit of hesitation in this area, and therefore I think we could see a significant pullback. The $5.00 level could be interesting, as it is a large, round, psychologically significant figure, and perhaps even more importantly it is where the last major impulsive candlestick formed.
NATGAS Video 20.09.21
I have been saying for a while we need to see a little bit of a pullback in order to find value, extending between the $5.00 level and the $4.80 level support zone. If we were to break down below there, then the market is likely to go looking towards the $4.50 level. The 50 day EMA is sitting just below the $4.30 level as well, and it is starting to reach higher. All things been equal, this is a market that has gotten far ahead of itself, and therefore a pullback is necessary in order to find a bit of value. The markets cannot go straight up in the air forever, and therefore I think this is long overdue.
The market continues to see a lot of demand in general, especially as Europe itself is struggling with the supply. That being said, the market is likely to pull back mainly due to the fact we are starting to see headlines coming out of the EU that factories are closing down due to a lack of power. It is normally at these times you have seen the market get completely out of whack.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
