Natural Gas Price Forecast – Natural Gas Markets Continue to Show Resistance

Natural Gas Technical Analysis

Natural gas markets have gone back and forth during the trading session on Wednesday as we continue to see the $9.00 level as a potential barrier. This is an area where we have seen a lot of trouble in the past, so it does make quite a bit of sense that we see this area offer a bit of a ceiling. At this point, it looks like we are exhausted, especially considering that there was such a massive shooting star from the previous session.

If we were to break down below the bottom of the range for the session on Wednesday, it’s likely that natural gas will go looking to the $8,00 level. The $10.00 level is an area that will have a little bit of psychology attached to it. On the other hand, if we were to turn around and rally, we could go looking to the $10.00 level, but that is a large, round, psychologically significant figure that I think will be difficult to break through.

Looking at this chart, it does seem to be prone to extreme swings in one direction or another, and therefore I think it’s likely that we swing the pendulum in the other direction. Ultimately, I think it’s only a matter of time before we see a pullback as we had gotten too far ahead of ourselves. Yes, there has been a heat wave, but at the end of the day, it’s starting to dissipate in the US.

All things being equal, you need to be cautious about your position sizing, but it certainly looks as if natural gas is running out of steam and I think it’s only a matter of time before we drop.

Natural Gas Price Forecast Video for 28.07.22

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