Where Main Street Meets Wall Street

Natural Gas Price Forecast – Natural Gas Markets Selloff to Show More Volatility

6


Natural gas markets have initially tried to rally again during the day on Wednesday, but then gave up the gains to turn around and crash through the $6.00 level. If the market is anything at this point in time, it is most certainly volatile. If we break down below the lows of both Tuesday and Wednesday, it is likely that this market will go looking towards the $5.50 level again. That is an area that of course has attracted a lot of attention over the last several days, so I think there would be a little bit of buying pressure in that area.

NATGAS Video 07.10.21

That being said, this is a market that is overbought and is starting to show more signs of volatility. Typically, when you start to see a lot of choppiness like this after a huge move to the upside, you are getting closer to the end than the beginning of the trend. On a breakdown below the $5.50 level, it is likely that the market could go looking towards the $5.00 level, where the 50 day EMA is starting to reach towards.

If we do break above the highs of the trading session on Wednesday, then the market is likely to get even more parabolic, but at this point in time the market has gotten stretched and has been begging for some type of relief. When markets get parabolic like this, a correction makes quite a bit of sense and therefore I do believe that is coming. That being said, I am not necessarily looking to short this market anytime soon.

For a look at all of today’s economic events, check out our economic calendar.



Source link

Leave A Reply

Your email address will not be published.