Advertisement
Advertisement

Natural Gas Markets Continue to Defy Gravity

By:
Christopher Lewis
Published: Apr 18, 2022, 15:57 UTC

Natural gas markets have rallied significantly during the trading session again in somewhat thin trading on Monday, as we are now threatening the $7.75 level.

Natural Gas Markets Continue to Defy Gravity

In this article:

Natural Gas Technical Analysis

Natural gas markets have gone parabolic again during the trading session on Monday as the market continues to focus on the situation in Europe, and whether or not Europe will pay its gas bill in Russian rubles. That being said, the market continues to shoot straight up in the air as concerns about the situation in Europe getting better seem to be a major concern. Because of this, I think it is probably only a matter of time before we see some type of capitulation by the Europeans. Quite frankly, if they hang on to the idea of not paying on Russia’s terms, it could be an absolute disaster.

From a technical analysis standpoint, the breakout of the previous consolidation area does suggest that perhaps we could get as high as $9.50, but this trajectory is very difficult to grab onto. If you were to buy now, you would have to be willing to at the very least put on a $0.35 stop loss based upon a daily candlestick. This is the conundrum in this market because quite frankly it has been nothing but positive, but it is going to be difficult to simply buy this market at this extended level.

Sooner or later, something will have to come to fruition to make a longer-term decision. If we see signs of exhaustion, then it could be the beginning of the end. At this point, I would not short the market, so in theory, you should be a buyer of dips. However, what I am concerned about is the fact that the market only needs to hear that the Europeans are going to buckle, and that would send this market straight down.

Natural Gas Price Forecast Video 19.04.22

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement