Natural Gas Price Forecast – Natural Gas Markets Continue To Struggle
Natural gas markets have been relatively quiet during the trading session on Tuesday, as traders have come back from the Martin Luther King Jr. holiday. That being said, we are at extremely low levels, so it is probably not a huge surprise to see that the market is taking a bit of a breather after selling off the way it has. This has been absolutely brutal move, and it would not be a surprise at all to see the market bounce from here.
NATGAS Video 22.01.20
While I am not a huge trader of Bollinger Bands, I recognize that they can be very useful when trying to identify an overbought or oversold condition. The Natural Gas markets are a perfect example of that right now, and it does look like a bounce is likely due to the fact that we are overextended. According to this indicator, we could go as high as $2.10, which I would be more than willing to short at the first signs of exhaustion. Inventory numbers will be paid close attention to this week, but quite frankly I think at this point it’s almost impossible to imagine a scenario where we go through enough supply to change the overall trajectory of the market for more than a couple of days. Going forward, the specter of massive bankruptcies hangs over this marketplace, as several countries are starting to be scrutinized by creditors and ratings agencies. Eventually, the market will correct itself but it is far too oversupplied at the moment.
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This article was originally posted on FX Empire
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