Natural Gas Weekly Technical Analysis
The week started out somewhat strongly, but as you can see, we have pulled back from the $2 level, which of course is an area that a lot of people will be paying close attention to. And with that being said, I think it makes quite a bit of sense that we continue to just bang around in this area. If you’re a short-term trader, you may be able to go back and forth between $1.50 and the $2 level. This is a fairly well defined area that people will be paying close attention to, so I think this is very likely to be where we are going forward.
So, with that being the case, I think you have to look at this as something that’s probably more akin to a swing trading opportunity than anything else, as natural gas is very difficult to trade from a short-term perspective We are heading into spring in the United States and that’s going to have a major influence on Natural gas so do keep that in mind. I would put a line on the chart at $1.50 and look at that as your hardcore floor. This is an area that has been specifically important for multiple decades and therefore I do think that it’s a hard floor in the market. The closer we get to $1.50, the more likely I am to be a buyer of ETFs or low leverage CFDs, something like that, waiting for the next spike. That being said, you’re going to have to be very patient.
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