Natural Gas Markets Continue Volatile Trading

Natural Gas Technical Analysis

Natural gas markets have gone back and forth during the trading session to settle on a move higher during the Friday trading. Looking at this chart, it is obvious that the $6.50 level has offered a significant amount of support recently, and it was significant resistance before that. In other words, I think the key to the entire market is going to be the $6.50 level. As long as we stay above there, you have to continue to look at this through the prism of it possibly going higher, but once we break down below there, I think momentum may take over. There are a lot of reasons to think that the natural gas market could turn around, but we have not clearly seen the downward momentum necessary.

At this point, you need to worry about whether or not Europe finally gives in to the demands of Russia, which quite frankly the more likely than not will have to sooner or later. However, we trade price and not “reality.” After all, the market can remain in one direction or another longer than people expect. The $7.50 level is resistance as well, so if we were to break above there is likely that the market could go much higher.

If we do break down below the $6.50 level on a daily close, then I will be looking for a big move to the downside, probably down to the $5.50 level, perhaps even the $5.00 level. In general, this is a market that will remain very volatile and noisy, and of course driven by headlines coming out of Russia and the EU.

Natural Gas Price Forecast Video 02.05.22

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