NATGAS Analysis - Retrace Before Further Move Downward
Updated
Fundamental $2.00 level has been broken, signaling how weak the market actually is, during a time it should be strong.
Due to oversold conditions, temporary prop back up to $2.05 - $2.11 (previous support) level is expected.
Natural gas analysts are expecting natgas production to remain high throughout 2020 which will eventually subside in 2021, when cuts will occur due to companies filing bankruptcy and other factors. Thus, the strong natgas production during extremely weak consumption will lead to this market retracing $1.60 low.
Natgas might also possibly complete the cycle seen in the daily/weekly charts to $1.30, which at that point you go all in long and become a millionaire. :) Good luck!
Due to oversold conditions, temporary prop back up to $2.05 - $2.11 (previous support) level is expected.
Natural gas analysts are expecting natgas production to remain high throughout 2020 which will eventually subside in 2021, when cuts will occur due to companies filing bankruptcy and other factors. Thus, the strong natgas production during extremely weak consumption will lead to this market retracing $1.60 low.
Natgas might also possibly complete the cycle seen in the daily/weekly charts to $1.30, which at that point you go all in long and become a millionaire. :) Good luck!
Note
NATGAS looking extremely weak and less likely that it will make a move upwards unless there is a strong winter storm that rolls through. It is likely that NATGAS can continue the move downward to $1.60 as the next strong support. Two levels to watch for substantial gains will be $1.60 and $1.30 where the risk to reward will be very strong in the next coming years.
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