Natural Gas Markets Gapped Higher to Kick Off the Tuesday Session

Natural Gas Technical Analysis

Natural gas markets gapped higher to kick off the trading session on Tuesday to break above the $7.00 level. That is an area that has been important over the last several sessions, so it is worth noting that we are starting to pull back from there. If we do pull back, then it is very likely that the market could go back and forth between that area and the $6.50 level underneath, to continue building a consolidation area.

The market breaking down below the $6.50 level could open up the possibility of a move below the $6.30 level, which I believe would kick off quite a bit of selling pressure. Anything below there will more than likely cause a major amount of selling pressure, as demand for natural gas should drop with warmer temperatures. Yes, there is the never-ending saga of the European Union trying to get away from using Russian gas, but at this point, it is still not a viable option.

It is also worth noting that in the few minutes it has taken me to write these few paragraphs, natural gas has lost $0.04. I anticipate that this market is going to continue to see a lot of volatility, as the seasonality of the market is most certainly bearish, but the same time we have to deal with headlines coming out of the European Union and Russia itself. The reality is that eventually, Europe will have to do something to get away from Russian gas or capitulate. This is what the market is trying to figure out at the moment.

Natural Gas Price Forecast Video 27.04.22

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