Natural Gas Markets Continue to Consolidate

Natural gas markets have been very noisy during the trading session on Wednesday as we continue to hang a bounce in the same tight range that we have been in for a while. That being said, the market is likely to continue seeing problems overall, due to the fact that the market is fighting a couple of different fights at the same time.

NATGAS Video 17.03.22

Looking at this chart, it is obvious that there is a significant amount of resistance near the $5.00 level, and therefore I think you need to be cognizant of the fact that any time we reach that area, it is very likely that it will be a bit of a barrier. If we can break above the $5.00 level, it is likely that it will be a big selling opportunity, because it is only a matter of time before exhaustion comes back into the picture.

Keep in mind that the natural gas markets have to worry about the disruption of supply coming out of Eastern Europe, but at the same time they are going to be focusing on the fact that temperatures are rising. In other words, demand is going to be falling naturally, so I think it is only a matter of time before you sell rallies in this market.

The 50 Day EMA underneath continues to be dynamic support, so it is worth paying attention to, and if we break down below there it is likely that we fall apart. At that juncture, I would anticipate that the 200 Day EMA is the next target, currently sitting at the $4.20 level.

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