Natural gas technical analysis
Natural gas markets initially rose during Friday’s trading session, but the 50-day EMA has resisted a little too much. By doing this, the market is likely to continue to see a lot of selling pressure, and we may even collapse from here. On the other hand, if we were to move above the 50-day EMA, it is possible that we could recover and try to reach the $9.00 level. That said, we have recently formed a rising wedge and have not yet hit the target.
The market dropping below the $7.69 level could create significant selling pressure as it would blow through much support and move beyond the measured move. If that were to happen, it’s likely we’ll end up testing the 200-day EMA. Ultimately, this is a market that is still tossed around by a lot of different problems, not the least of which, of course, will be whether the Americans can supply liquefied natural gas to the Europeans, which at the moment is not likely they will be able to.