Natural Gas markets first attempted to advance during Thursday’s trading session, but later surrendered gains and plunged below the 200-day exponential moving average (EMA) once more. Ultimately, the natural gas markets continue to struggle, but I believe we are attempting to build a foundation in this sector. This makes sense; many algorithms like the 200-day exponential moving average (EMA), and traditional technical analysis implies that it represents the trend’s floor.
If we fall below the hammer from Wednesday’s session, it is possible that we will continue to decline from here. It is a potential minefield, although I do not anticipate that to be the case. If we do rise from here, I believe the 50-day exponential moving average is just below the $8.00 level and descending.
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Due to this, I believe that there is likely a significant amount of selling pressure above, and as a result, I believe that the relief rally will likely also be sold into, despite the fact that we are slightly oversold. In light of this, I do think that prices will decline, but we will likely need to consolidate, if not rally a bit, in order to provide another opportunity to sell short.
The US dollar has been gaining significantly, and this has had some effect on this market. However, the global economic slowdown poses a far greater threat to energy consumption, as shown not only in this market but also in the petroleum markets.