Natural Gas Price Forecast – Natural Gas Markets Have Rallied Again on Monday

Natural Gas Technical Analysis

Natural Gas gapped to the upside during the trading session on Monday as we continue to see a lot of bullish momentum. Ultimately, it’s worth noting that the market is paying attention to heat waves, as we have them seemingly everywhere. That being said, this is a short-term phenomenon, so that might be why we have seen such a massive shot to the upside.

The market is well above the $8.00 level at this point, and I was starting to reach the overbought yet again. The $9.00 level would be an area of significant resistance as we sold off from there quite drastically. Any signs of exhaustion near there would more likely than not be a nice swing trade, but the question is whether or not we can make it there? If we do, it could be a nice opportunity.

Alternatively, if we turn around and break below the $8.00 level, that would be a very negative turn of events and could send this market to the 50 Day EMA. I do think that the recent breakdown is something that did not happen in a vacuum, but the massive amount of volatility continues to be a major issue when trading natural gas. Quite frankly, retail traders have no business trading in this market right now because it is being kicked around by a handful of major players.

Ultimately, this is a market that is very abundant from a longer-term standpoint, so I do believe that we will see this market do something that makes no sense in a normal environment: start falling into the cooler weather for the northern hemisphere.

Natural Gas Price Forecast Video for 26.07.22

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