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Natural Gas Price Forecast – Natural Gas Continues to Look Stretched

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Natural Gas Technical Analysis

You can see that the natural gas market initially tried to rally early in the day but has given back a little bit of its gains. That being said, I think this is a market that if it pulls back, you probably find buyers underneath. In general, this is a situation where we’ve just gotten a little extended. So, my ETF position that I’ve talked about numerous times, I am going to be selling a little bit right here, right now. I will add later on a dip. But right now, the 200-day EMA is something that you need to pay close attention to.

Ultimately, I think you’ve got a situation where we are forming a longer term basing pattern, but that doesn’t mean you have to hang on to it all the way to the very top. It’s a matter of flipping some of the profits and then adding as you go along. We have obviously changed the overall structure of the market, but it’s not necessarily an extraordinarily bullish time of year for natural gas under most circumstances anyway.

So, it makes a certain amount of sense to take some profit and then add later on a pullback closer to the $2 level, maybe the 20-day EMA. Keep in mind that there has been a massive bottoming pattern, and that generally means we are in the midst of changing the trend. We’ll have to wait and see. But this could be a very slow move through the summer, which is quite typical for it, truthfully.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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