Natural Gas Price Forecast – Natural Gas Markets Attempt to Recover

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the course of the trading session on Thursday to test the 200 Day EMA yet again. By doing so, the market looks as if it is trying to build some type of base, or perhaps just simply kill some time before continuing the downtrend. The natural gas market is going to pay close attention to the overall demand coming out of the United States because quite frankly the European situation has suddenly gotten rather negative.

The $5.40 level has offered a bit of significant support, so if we were to break down below there, it’s likely that the market will drop to the $5.00 level. After that, the market then unwinds quite drastically. The market has been negative for some time now that the United States is not going to be shipping enough LNG to supply the European Union. Quite frankly, it was a bit astonishing that the market thought the United States was going to be able to do that when a little bit of reading and arithmetic would’ve told you the difference.

Now that we have broken to the outside the way we have and then pulled back, there will be the occasional rally, but that rally should be something that gives you an opportunity to start shorting again. The $6.50 level should continue to cause a little bit of market memory coming into the picture, thereby quite a bit of selling pressure. The 50 Day EMA sits just above the $7.00 level, and is dropping quite steadily. Ultimately, this is a market that I have no interest in buying.

Natural Gas Price Forecast Video for 08.07.22

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