FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
21,448,449Confirmed
765,180Deaths
14,222,841Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
Natural gas weekly chart, December 31, 2018

Natural gas markets initially tried to turn around and break above the $3.75 level, but then fell hard from there to reach towards the $3.25 level. This is an area where we had a gap previously, and of course this will attract certain amount of attention. The 50 EMA on the weekly chart has offered technical support, but quite frankly I think what we are more than likely going to see is a short-term bounce that we consider selling again. I think the $3.75 level will also offer resistance, and I’d be more than willing to sell an exhaustive candle in that area. I also believe that the $4.00 level is even more resistance based upon exhaustion.

NATGAS Video 31.12.18

I think at this point we will continue to see rallies fail, because we are starting to focus on the springtime in the United States which is a historically negative time. Beyond that, there are concerns about global growth, and that of course will weigh upon the idea of higher natural gas demand. With that in mind, and the fact that we got well ahead of ourselves early in December, I think that the entire bubble has popped, and now we are looking at a return to normalcy. With that being the case, there’s so much in the way of supply that rallies are to be sold as we should continue to not only break down to the $3.25 level, but I think we will eventually go to the $3.00 level as well.

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk