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Natural Gas Markets Continue to Hover

By:
Christopher Lewis
Published: Mar 29, 2022, 15:37 UTC

Natural gas markets have fallen a bit during the trading session on Wednesday, as we are at extremely elevated levels again.

Natural Gas Markets Continue to Hover

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Natural Gas Technical Analysis

Natural gas markets have fallen a bit during the trading session on Wednesday as we continue to hang about extraordinarily high levels. At this point, the market looks as if it is overdone, so I would be much more obliged to sell it, but breaking down below the bottom of the Wednesday candlestick could be the signal that more conscious traders are paying attention to.

On the upside, we had formed a shooting star during the previous session, so breaking above that could open up another leg higher. As rumors continue to circulate about the progress being made in the cease-fire, natural gas markets will probably be one of the first places people take profit. After all, a lot of this is based on the idea of future LNG purchases from the European Union, which could go by the wayside rather quickly apiece breaks out.

Regardless, we are at a historically expensive level, so I do think that you need to look at it through that prism. The natural gas markets do tend to be very seasonal as well, and we are most certainly in a season that does not favor higher prices. Quite frankly, all we need is some type of good news out of Ukraine and that could be the end of all of this. Furthermore, there is a lot of resistance just above that could come into play so I would not get overly excited, at least not now. The natural gas markets could find themselves back at the $3.50 level and rather short order over the next couple of months if any of the historical norms come back into play.

Natural Gas Price Predictions Video 30.03.22

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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