Yahoo Finance Natural Gas Markets Have a Stellar Week
Natural Gas Weekly Technical Analysis
Natural gas markets have had a stellar week to reach the $5.50 level. That is an area that has been very important in the past, and we have seen a lot of selling. Because of this, it is very likely that the market will run into a buzzsaw of pressure, but it is also worth noting that the Europeans have now agreed to start buying liquefied natural gas from the United States. Granted, this is more of a longer-term deal than it is anything that is going to move price at the moment, so therefore I think you have to focus on the weather yet again.
We are getting some cold weather in the northeastern part of the United States, but it is probably only a matter of time before we see warmer temperatures coming into the picture, perhaps driving down demand yet again. With this, market participants may choose to push natural gas back down to the $5.00 level. You can clearly see on the weekly chart how much noise there is above, so it is going to take something extraordinarily bullish to send this market through that area.
The size of the candlestick is of course rather bullish, so that is something to keep in the back of your mind, but seasonality eventually comes into the picture and squashes all of this. I do not wish to chase the trade, but I need to see some type of negativity on at least the daily timeframe in order to start shorting. Expect a lot of volatility in this area.
NATGAS Weekly Technical Analysis Video 28.03.22
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This article was originally posted on FX Empire
