Natural Gas Markets Sluggish

Natural Gas Technical Analysis

Natural gas markets have been somewhat sluggish during the trading session on Monday as the market seems to be shrugging off the idea of Germans not paying the Russians for gas in rubles. This is one of those moments where the news may have already been “baked into the market”, even though the idea of the EU buying more gas from America may have had an effect on the market previously. The big secret of course is that the EU is currently at about max capacity for imports from America because they do not have the number of facilities to “re-gasify” LNG. In other words, the market has gotten ahead of itself.

When you look at the technical analysis, we are obviously bullish, but we also have quite a bit of noise above that is going to be difficult to break above. If we break down below the $5.47 level, I would start shorting again. However, as far as rallying is concerned, I think it is easier to make a strong case for buying crude oil than it is natural gas, as the two markets do tend to move back and forth based on overextension of the other one.

This is a market that I think is on the precipice of making a bigger move, and quite frankly if we do break out above the $6.50 level, that would be catastrophic, because sooner or later the cure for higher prices ends up being higher prices. I do not think we are there quite yet, especially as demand is dropping, but at this point a lot of headline noise continues to drive panic into the market.

Natural Gas Price Forecast Video 05.04.22

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