Natural Gas Price Forecast – Natural Gas Market Spike

Natural Gas Price Forecast Video for 13.12.22

Natural Gas Technical Analysis

Natural gas markets have gapped higher to kick off the trading week, as word of a major winter storm coming to the United States has sent this market rocking to the upside. We have gapped above both the 50 and the 200-Day EMA indicators, so that of course is a very bullish sign. This is one of the major problems with trading natural gas, you need to understand weather. Furthermore, you need to understand that wheather in the northeastern part of the United States is unpredictable at best, so this makes natural gas one of the worst markets to trade, especially if you are not in the United States itself.

At this point, you would expect the market to fill the gap, and then perhaps find buyers. On the other hand, we could go all the way to the $8.00 level above, which is a large, round, psychologically significant figure. At this point, it looks as if volatility is only going to pick up, but keep in mind that one of the major dangers here is going to be that the winter storm ends up not being as bad as predicted, and if that ends up being the case, natural gas will fall apart. In other words, when you are trying to trade fundamentals in the natural gas markets, you are literally betting on the weather.

Nonetheless, there’s obviously some upward momentum here, so look at pullbacks as potential buying opportunities, at least in the short term. Ultimately, I still believe that we are trying to carve out a new range, perhaps between $8.00 and the $5.50 level.

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