Natural Gas Price Forecast – Natural Gas Continues to Sit on the 200 Day EMA

Natural Gas Technical Analysis

Natural gas markets have done very little during the trading session on Monday, which should not be a huge surprise considering that it was Independence Day in the United States. That being said, we are also sitting on the 200 Day EMA, an area that would attract quite a bit of interest to begin with. The massive selloff on Thursday shows just how bad the situation is for natural gas right now, with the Fremont terminal not being able to send LNG to Europe.

Now that the Europeans have finally realized that the United States can’t bail them out, they have switched to coal. My suspicion is that eventually they will switch to Russian gas, but in the meantime they will try to fight the idea. That being said, it takes the massive push in this market to the upside out of the equation, and I suspect that we continue to see plenty of sellers on rallies that show signs of exhaustion.

The $6.50 level should be resistance, so I would look for signs of exhaustion on a bounce to that area. On the other hand, if we take out the bottom of that massive candlestick on Thursday, this market goes much lower, perhaps reaching the $5.00 level. Eventually, I anticipate that this market goes looking to the $4.00 level, as we have just fallen off of a cliff, and will almost certainly continue to drop from here. The market participants have ran the market up for extraordinarily large profits, and now are doing the same thing in the other direction.

Natural Gas Price Forecast Video for 05.07.22

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