US Natural Gas posted a great decline on Friday at the close of the markets. I am highlighting it because it is the greatest decline among the commodities I am watching. The fall was about 3%.
With demand down for energy, I foresee further fall in prices next week. This is a good time to short.
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Natural Gas has fallen more than the 1.72 support I predicted. I saw this coming. That is why it is not useful listening to fundamental news. The news said that as lockdown is eased, demand would rise and energy prices would rise. But my patterns told me that the price would fall based on technical analysis. Price trumps fundamental news. Everyday.
it just went to 2.2! when do you think it will go down to support again?
Emekadavid
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@yehia313, yeah thanks. Being watching it with interest. 1.77 level proved to be good support. It didn't breakout as expected. Right now it is at 2.00, a round number and psychological level. So, I think that level will be resistance and it will be an opportunity to short and take profit at 1.92 support before it rises again. With the easing of the lockdown, demand is gradually getting aggressive. Thanks.
Emekadavid
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@yehia313, Did you short as I predicted? If you had you would have raked in some pips for profit. If you check the charts, you would see that the support has also been broken as I predicted.
yehia313
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@Emekadavid, Unfortunately it kept on going up so I ended up closing at a big loss. I should have kept it open for another day or 2 to get the profit. I think will keep on going up from now on as the production (supply) will start declining with the number of rigs going down.