Natural Gas Price Forecast – Natural Gas Markets Plunge

Natural Gas Technical Analysis

Natural gas markets plunged on Tuesday as the heat in the United States is finally going away. Because of this, it drives down a bit of demand for the natural gas markets, which coupled with the idea that the Europeans will not be buying LNG sets this market up for a return to somewhat normal conditions. Granted, supply has dwindled over the year or so since the pandemic, but the lack of a heat wave in the United States will give the industry at least a reasonable shot at the recovery of supply.

The 50 Day EMA sits at the $7.37 level and could be thought of as the next target. Breaking down below that level opens up the possibility of an attempt to get down to the $7.00 level. Breaking it then opens up a move down to the 200 Day EMA. This is a market that I think continues to see a lot of volatility in what has been a ridiculously huge range. We are obviously going to continue to see a lot of noise, but ironically, it may be winter when we see the most stabilization in pricing.

This is typically the worst time of year for pricing, but nothing has been normal about this year, to say the least. If some type of peace can be found between the Russians and the Ukrainians, that will drive prices through the floor. Granted, it has absolutely nothing to do with Henry Hub, but the markets don’t seem to be paying attention to that from time to time. If there is a recession in the United States, demand should drop from an industrial point of view as well.

Natural Gas Price Forecast Video for 03.08.22

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