Natural Gas Weekly Technical Analysis
You can see that the natural gas markets have fallen this week yet again. And it looks like we are ready to continue the ugly negativity that we had seen for a while. Last week, the shooting star, of course, suggesting that perhaps we had run out of momentum.
I do think this is a correction. I don’t think it’s the beginning of some type of massive meltdown, but this is the wrong time of year for natural gas to be strong. So it does make a certain amount of sense to me that the market is more likely than not to find its way to lower levels. I suspect that the $2.20 level would be the first area of interest based on shorter term charts. And then eventually, I think we have a lot of interest, obviously.
At the $2 level, the $2 level of course is an area that will always attract attention due to the fact that it is a large round psychologically significant figure and is good for headlines. With this, I think you’ve got a situation where you’re waiting for a significant drop in order to start investing. And that’s the key word here, investing. I don’t want to be levered to the throat in natural gas.
It’s a horribly volatile market under the best of circumstances. And right now, we have so many things going on around the world and with the weather that it does make it a very difficult market to hang on to. So I use an ETF, I don’t have a lot of leverage. As a matter of fact, I don’t have any, but if I were you as CFDs, I would use small ones. That way I can take advantage of the move without being in serious financial danger. Just a thought.
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