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Natural gas markets fell hard on the Friday session as we continue to see a lot of bearish pressure in this marketplace. Ultimately, it looks as if the market is going to continue to struggle due to the trade war situation and of course a lot of concerns when it comes to a widening global problem. Now that we are down below the $2.50 level we could go as low as the $2.25 level, possibly even the two dollars level after that. At this point, I don’t have any interest in buying this market and it does look as if the 50 day EMA continues offer massive resistance.
NATGAS Video 03.06.19
If we did break above the 50 day EMA, then the market could go higher. Looking at this chart, I think that it continues to be a longer-term grind to the downside as natural gas markets are worried about the global growth story, and of course it is the wrong time of year to think that the market is going to continue to turn around and rally significantly.
With this, I continue to short exhaustive candles on short-term charts and take advantage of negativity. If we did break to the upside, it would more than likely just be a nice selling opportunity above. The $3.00 level above is the absolute “ceiling” in the market, and therefore I believe that there are plenty of opportunities until about November, when the market typically turns around. I have no interest in buying whatsoever as this is a broken chart.
Please let us know what you think in the comments below
This article was originally posted on FX Empire