Natural Gas Markets Continue to Wrestle Back and Forth

Natural gas markets have fallen rather hard during the course of the trading session on Tuesday to reach down towards the $4.51 level before bouncing a bit. That being said, the market certainly seems to be following a range in general. The $5.00 level above continues to offer resistance, and the 50 Day EMA underneath is starting to curl higher, sitting at the $4.40 level. Nonetheless, I do think we break down through that given enough time.

NATGAS Video 09.03.22

Natural gas markets will fall due to the warmer temperatures in the United States, as demand will drop. Even though there are a lot of concerns about Russian gas in the European Union, temperatures will be rising there as well, so demand will also drop. At the end of the day, it looks like the market is going to go back and forth between the $5.00 level and the $3.50 level underneath. Looking at the chart, I think that even though we have bounced a bit towards the end of the day on Tuesday, it shows just how weak this market is, and I do think that we will continue to find reasons to drop.

I have been trading this market on the shorter-term charts, fading rallies that show signs of exhaustion and I will continue to approach it as such. All of this noise continues to cause issues, but at the end of the day, natural gas is plentiful, despite the fact that you hear headlines parading the issues in Europe. Eventually, this is a market that I think reaches towards the $3.50 level given enough time.

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