Yahoo Finance Natural Gas Price Forecast – natural gas markets quiet four holiday session
As it was Martin Luther King Junior holiday in America, natural gas markets were extraordinarily quiet as it would have been relegated to a minor electronic trading. That being the case, the gap lower shows that there is more of a proclivity to go to the downside, and I think rallies will continue to be sold in general. I believe that the $3.50 level of course is going to be significant resistance, that extends all the way to the $3.75 level. Signs of exhaustion above will continue to be shorted and therefore I think the market will offer more of the same in the future. The $3.00 level underneath of course is massive support, and I think it should hold for the time being. We are of course still in the middle of winter in the United States, so there will be the occasional spike due to cold temperatures. However, those will be short-lived and I don’t think that they will be anything more than an opportunity to sell from higher levels.
NATGAS Video 22.01.19
If we were to turn around and break above the $3.75 level, I think then the market could go to the $4.00 level, but I think that level will be even more resistive. Ultimately, I do not by this contract under any circumstances as natural gas is far too oversupplied to hold onto longer-term gains. This has simply been a seasonal move.
This article was originally posted on FX Empire
