Natural Gas Technical Analysis
The natural gas market has fallen a bit during the trading session on Tuesday as we continue to see a lot of downward pressure due to the fact that the ceasefire has been agreed to by Israel and Iran. And of course, the Iranian natural gas fields have not been destroyed. So, with that being said, we start to focus on the idea of a lack of demand this time of year. This time of year, typically does see a lot less demand, although at the moment we are in the midst of a heat wave in the United States, but that will be a temporary thing.
With this, I think we’ve got to look at this through the prism of the 50 day EMA offering a little bit of support, but if we can break below there, then we could drop to $3.50, possibly the 200 day EMA. Rallies at this point in time, I think continue to see the $4 level as a major barrier, and it’s also worth noting that we topped out at the 61.8 % Fibonacci retracement level. So technical traders may have been paying attention to that as well. Either way, this is a market that looks like it is primed to go lower from here, but it is going to be a grinding move, not necessarily a slice straight through all of the support. We already had that in the form of the Monday candlestick. I am a seller of signs of exhaustion on short-term charts, and I have no interest in buying natural gas.
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