Natural gas markets are testing a major support level in the form of $2.50, closing just underneath it. That is an extraordinarily negative sign and it does in fact suggest that we have further downside to go. If we break down below the bottom of the candle stick it’s very likely that we go looking towards the $2.25 level but let’s be honest here: if you are trying to trade this from a longer-term standpoint you missed the trade several months ago.
NATGAS Video 22.04.19
It is because of this that the market is probably easier traded from the daily chart, or perhaps even shorter time frames. However, if we turn around of form a supportive candle on the weekly timeframe, that could be the signal that the buyers have finally returned and we will reenter the consolidation area that you can see clearly marked on the chart between the $2.50 level and the $3.00 level. Simply put, we are heading into a bearish time a year, but we are at extremely low so this of course says that we need to make some type of major decision at this point. Longer-term traders are going to need to be patient to place a longer-term trade. This is the realm of scalpers and momentum traders right now, but as soon as we start to turn the tide of momentum, I will be the first to tell you here at FX Empire as it could set up for a very excellent buying opportunity.
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This article was originally posted on FX Empire
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