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Natural Gas Markets Continue to Find Sellers

By:
Christopher Lewis
Updated: Mar 4, 2022, 15:55 UTC

Natural gas markets continue to see sellers below the $5.00 level, and at this point in time is very likely to see more of the same going forward.

Natural Gas Markets Continue to Find Sellers

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Natural gas markets initially tried to rally a bit during the trading session on Friday as the markets continue to pressure to the upside due to the concerns about temperature fluctuations and of course the fighting in Ukraine. That being said, the Henry Hub contract is US-centric, so I do not think that we are likely to go much higher due to the fact that we have plenty of warm temperatures coming down the road.

NATGAS Video 07.03.22

Yes, there may be a little bit of pressure on exports, but the export part of the market in the United States is very small compared to the overall price. The $5.00 level has offered enough resistance to keep the market down a bit lately, so I still like the idea of shorting the market every time we get a little close to it. Breaking down below the bottom of the last couple of days will more than likely go looking towards the $4.50 level. That of course is an area that will have a certain amount of psychological importance, so at this point in time, I think we probably have a bit of a bounce if we get down there. However, I do think that we break down below that level given enough time, perhaps reaching down towards the 200 Day EMA and then the $4.00 level.

If we were to break above the $5.00 level, the $5.50 level is probably about as far as we can go, and quite frankly I think that this market will eventually crash, given enough time. That being said, you still need to be a bit cautious in this current environment.

Natural gas markets continue to see sellers below the $5.00 level, and at this point in time is very likely to see more of the same going forward.

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.

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