Natural Gas Markets Trying to Stabilize

Natural Gas Technical Analysis

Natural gas has been an extremely parabolic market as of late, and as a result, the pullback would not have been a huge surprise. Quite frankly, the thing that was the big surprise is just how long it took for that pullback to happen. The Germans look to be building a major hydrogen facility, so perhaps they are starting to come to grips with the idea of being stuck with Russian natural gas, assuming they are going to stick with natural gas at all.

Nonetheless, like I said yesterday, the $6.50 level will continue to be important, as it was the previous resistance barrier. “Market memory” should come into the picture in that area, so be advised that it is an area that we could see buyers come back in because if they do not, we could see a significant breakdown. At this point, I need to keep a relatively safe distance from the market, because you do not want to chase the market all the way up here, but then again you do not necessarily want to jump in and start shorting either. I believe that the $6.50 level will be crucial, so it will be worth paying attention to the daily candlestick once we get down to that area, and whether or not we see signs of life.

If we see signs of support near the $6.50 level, then it is likely that we could go to the $8.00 level. Underneath the $6.50 level, it is possible that the market could go looking to reach the 50 Day EMA, which is closer to the $5.60 level. At this point, if we are still in a “wait and see” mode, because we do not necessarily have a signal to start buying either.

Natural Gas Price Forecast Video 22.04.22

For a look at all of today’s economic events, check out our economic calendar.