Natural Gas Price Forecast – Natural Gas Markets Get Hammered AgainThe natural gas markets are approaching the gap that I had previously mentioned, it will be interesting to see how this plays out. I am still on the sidelines.
Natural gas markets have initially tried to rally during the trading session but found enough resistance above the $2.00 level to turn things around. Ultimately, the market is looking down towards the $1.85 level underneath, which is basically where the beginning of the gap starts. That is a gap that should in theory be supportive, so it will be interesting to see how this plays out. I have been stating that I am not interested in shorting natural gas, because quite frankly this is a difficult time year to do so. However, it is obvious that we have plenty of selling pressure, so it is likely that the market is still going to be very difficult.
NATGAS Video 22.09.20
Looking at this chart, I am waiting for a daily close as an order to make a trading decision, so I would like to see a hammer and then a break above it. I thought we had that from Friday, but clearly that has not kicked off. I am simply on the sidelines and waiting because quite frankly commodities in general are getting absolutely crushed. This could be partially due to the US dollar strengthening, which of course works against the value of the commodity markets in general. Having said that, I am waiting for that daily close and signal in order to get involved. All things being equal, you are probably better off simply waiting to see whether or not the buyers will return. There are a lot of volatile moves out there does wait to happen.
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