Natural Gas Markets Have Another Negative Session

Natural Gas Technical Analysis

Natural gas markets have initially rallied a bit during the trading session but gave back gains to show signs of weakness yet again. The $6.50 level is an area that is going to be important, based upon the fact that the area previously had been significant resistance. The “market memory” in this area should continue to be a major influence on what happens next. That being said, the market is going to be interesting to watch in this area, because we should see either a bit of support that could have the market turn things around and go higher or a reasonable area to predict a breakdown.

It is worth noting that the market is in the midst of rollover, meaning that the futures front contract is changing. This does affect liquidity a bit, but at this point, I think it is obvious that we are starting to see the natural gas markets try to price and the fact that perhaps the logistics will not allow the European Union to import LNG from the United States like a lot of traders thought.

Because of this, market participants need to think about the possibility that perhaps this market is ready to turn around. That being said, what you do with the market does, not try to “help think it” going forward. The market participants have seen quite a significant pullback, so now we need to see whether or not it is going to offer value, or if it is assigned that the market has peaked?

If we break down below the $6.30 level, then I think it will confirm a major breakdown. On the other hand, if we turn around and break above the $7.00 level, the market is likely to continue the bullish run.

Natural Gas Price Forecast Video 25.04.22

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