Natural Gas Markets Continue to Test $6.50 During the Week

Natural Gas Weekly Technical Analysis

Natural gas markets have rallied a bit during the course of the week to show the $6.50 level as support yet again. We broke above the $7.00 level, and it looks as if we are ready to consolidate. That being said, the candlestick from the previous week is a massive shooting star type of candlestick, and a breakdown below the $6.50 level could open up quite a bit of selling. Alternately, we could go back and forth in this area, and try to build up enough momentum to make the next move.

The chart will continue to show a lot of noisy behavior, and quite frankly I think you can trade from the weekly timeframe right now. After all, most of what we are looking at is a reaction to the latest headlines coming out of Russia and the European Union, and all of the drama that comes along with it. That being said, the market is likely to be very erratic, so you are probably going to be forced to drive down to the shorter time frames, and therefore you will need to look at quick moves in order to benefit from price action.

Having said that, if we were to break significantly below the $6.50 level, then the market could fall rather drastically, perhaps reversing the overall trend. The question is whether or not we will continue to see bullish pressure, or if the story suddenly changes. After all, there have been several European countries opening ruble-denominated accounts at Gazprom. This suggests that perhaps the Europeans are going to give in to Putin, paying for Russian natural gas in the Russian currency.

Natural Gas Price Forecast Video 02.05.22

For a look at all of today’s economic events, check out our economic calendar.