Natural Gas Forecast July 17, 2017, Technical Analysis
Natural gas markets went back and forth during the session on Friday, as volatility continues. The $3 level above continues to offer massive resistance, so it does not surprise me at all that we pulled back after trying to slam into it. However, it appears that the $2.94 level is offering support, so I think that the markets will continue to chop around but it looks as if we are trying to roll over in general. The 24-hour exponential moving average has been rolling towards the downside, and it looks like we are eventually going to see sellers come back into this market. I think that the market then goes down to the $2.85 level, and ultimately even lower than that. The milder temperatures in the United States continues to be a massive influence in this market, and this being the case it’s likely that the position signs that you should be small.
Your capital is at risk
Take steps to protect herself
I believe that you should take steps to protect yourself in this market as the volatility will cause quite a bit of swings in profit, and of course losses. The market looks very likely to continue to focus on the oversupply of natural gas in the markets, and I think that should continue to be the main theme overall. I believe that rallies are to be sold, and I believe that there is a massive amount of resistance to at least the $3.10 level, which of course is quite a bit away from where we are now. A general sell on the rallies attitude continues to be what we will see going forward, and I believe that the overall bearish attitude continues with longer-term and bigger money players. Because of this, I have no interest in buying.