Natural Gas Price Forecasts – Natural Gas Markets Plunge – .

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Natural Gas Price Forecasts – Natural Gas Markets Plunge – .


Natural gas markets pulled back to show signs of real weakness at the open Monday, as we sank further into the $ 4.75 region. This is an area that has been favorable on several occasions, and on today’s chart I have drawn what could be considered a potential descending triangle. In other words, as the time goes by, it becomes more and more likely that we have put on the top for winter. Keep in mind that we are negotiating the January contract, so that would make some sense. If weather reports start to factor in warmer temperatures for late January / early February, it will put even more pressure on this market.

NATGAS video 30.11.21

There are concerns about industrial demand, but quite frankly I think it’s just cyclical noise. You can also argue for a ‘complex head and shoulders’, but the biggest problem with natural gas is that it is an extremely noisy market, so still be very careful with size. of your position of each transaction. You only add when the market proves its worth. If we fall below the $ 4.75 level on a daily close, I will move my entire narrative to bearish positioning. In fact, the triangle measures a downward movement in the $ 3.00 area, which would likely be more of a longer term situation. Ultimately, the market will decide what it wants to do next, but after Monday’s candlestick, the question is whether or not we have enough momentum to change this overall attitude? Remember, you are talking about the futures markets here, not the weather today.

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