Yahoo Finance Natural Gas Weekly Price Forecast – natural gas market forms a hammer
If you want to trade natural gas from a longer-term standpoint, the first thing I would tell you is stick to the CFD market. Quite frankly, the futures market gets to be a bit expensive, unless you have the appropriate trade size. As you can see, I have four lines on the chart, with roughly $0.30 being in the middle. This is the “battlefield” if you will, and the last $0.10 on both ends shows the “zone” of both support and resistance. This hammer tells me that we are going to stay within the overall norm of the consolidation area, so I anticipate a short-term burst higher. Longer-term, I think we still have far too much in the way of resistance to go higher for a significant run, so if you are a longer-term trader you can probably go back and forth over the course of several weeks in this market.
There’s far too much in the way of supply out there to see this market explode higher, and even if it did it will be a limited run. There’s obviously a ton of supply at the $3.50 level beyond the area I’m talking about, so that would be the absolute “ceiling” of the acceptable trading range. The $2.60 level has been massive demand recently, and as a result I think that will continue to be the case. Look for back and forth systems, perhaps changing direction every few weeks.
NATGAS Video 23.07.18
This article was originally posted on FX Empire
