Natural Gas Markets Stumble

Natural Gas Technical Analysis

Natural gas markets have gone back and forth during the course of the trading session on Monday, as we are trying to figure out where this market goes next. We had recently broken out rather significantly, but we continue to see a bit of a stumble in this neighborhood. This is because we are at a major area of confluence, that has both been support and resistance in the past. Looking at this chart, we had gotten a bit overdone so if we turn around a breakdown, I think it would make quite a bit of sense.

Warmer temperatures may or may not help gas, but typically it does. As we get less demand, prices should drop. The situation and miss in the European Union continue to be a major factor, even though most gas from the United States does not end up there. That being said, if we break above the highs of the day, we could go looking towards the $6.00 level, but I do not necessarily think that will be easy to do. If we break down below the bottom of the range for the day, then it opens up the possibility of a $5.25 level, possibly down to the $5.00 level.

We are extended, so unless something changes, one would think at the very least a pullback is probably due. Typically, this time of year will start to see a lot of selling, so unless we see some type of surging demand, I think we are getting closer to the end of the bullish run than the beginning. That being said, I have not really seen a technical signal to sell and the last several days.

Natural Gas Technical Analysis Video 29.03.22

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