Natural Gas Technical Analysis: Steps reversed
Natural Gas prices are taking a turn for the worse, sinking below $1.80 after a mixture of elements quickly made sentiment turn 180 degrees after the uprising on Tuesday. It was Fed’s Waller though who confirmed what markets were already thinking: those anticipated rate cuts are not going to come that quickly. This dampens hopes for a quick economic recovery and more growth potential, with thus demand being capped and even being revised to the downside. Further downside pressure is possible with the heating season ending and the summer lull in Gas markets ahead.
On the upside, the key $1.97 level needs to be regained first, with the 55-day Simple Moving Average (SMA) coming in as well. The next key mark is the historic pivotal point at $2.13. Should Gas prices pop up in that region, a broad area opens up with the first cap at the red descending trend line near $2.21.
On the downside, multi-year lows are still nearby with $1.65 as the first line in the sand. This year’s low at $1.60 needs to be kept an eye on as well. Once a new low for the year is printed, traders should look at $1.53 as the next supportive area
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