Natural gas prices continue to decline as traders begin to consider the possibility of a worldwide recession. In a worldwide recession, it is highly improbable that natural gas demand will increase, and therefore, I believe that, given sufficient time, buyers are more likely than sellers to benefit from any price increase. Exhaustion will be exploited, and a gap that we created at the start of play on Monday could come into play. In the end, rallies are more likely than not to be situations in which people will profit.
With the global economy slowing down, despite everything going on in the European Union, the reality is that natural gas is not going to be the commodity of choice, just as we are seeing a lot of crude oil sales despite big price decreases. In all honesty, some individuals are preparing for a huge economic downturn that could surpass 2008’s. If this turns out to be the case, then it makes perfect logic that energy will be penalised.
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In addition, the growing U.S. dollar has an impact on this market, so keep that in mind. Until we break over the 200-day exponential moving average, I will not even faintly consider the market to be showing signs of strength. Until then, anything between now and then will be only noise that I will ignore. Yes, the United States is seeing a cooling trend, but not enough to significantly stimulate this market.
