Natural Gas Weekly Technical Analysis
Natural gas markets have been all over the place during the week, as we continue to see a lot of volatility, and at this point, it seems like it is getting worse. Volatile markets typically do not indwell, and I think sooner or later we are going to see some type of massive move that is either going to be an even more parabolic melt-up than what we have seen previously or some type of massive crash. At this point, I am a bit concerned about some of the people who reach out to me, who are heavily leveraged in this market. For example, early this week when natural gas dropped over $ 1.00 in the contract, the panic emails that I got were alarming.
Looking at this chart, I believe that the $ 6.50 level is an obvious barrier that has to be respected. If we were to break below the $ 6.50 level, then it is likely that we could fall apart. However, if we do continue to see this area offer support, then obviously the buyers will come in and push the market back up. Whether or not we can make a fresh, new high is a completely different question, and quite frankly one that I do not know.
However, it is worth noting that the candlestick for the week is a massive hammer. The question now is whether or not it is a hammer that suggests we are going to go higher, or if it ends up being a “hanging man?” The next couple of weeks should tell the entire story for the next several months.
Natural Gas Price Forecast Video 16.05.22
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This article was originally posted on FX Empire