Natural Gas Price Forecast – Natural Gas Markets Continue to Grind

Natural Gas Technical Analysis

Natural gas markets have gone back and forth during the day on Wednesday as we continue to see a lot of hesitation to break above the $9.50 level. If we do, then it’s very likely that this market will reach the $10.00 level above. The $10.00 level is an area that will attract a lot of headline attention, and I would anticipate a certain amount of profit-taking in that region. Whether or not we can break above there is a completely different question, but at this point, I think it’s very likely that we will at least attempt to.

A pullback at this point will have the market entering the consolidation that I have marked on the chart, which extends all the way down to the $8.00 level. That’s an area that has been important a couple of times in the past, so I certainly would believe that a little bit of “market memory” could come into the picture. Furthermore, the 50 Day EMA is reaching higher and trying to go to the upside and reach the $8.00 level.

At this point, looks like we still have to favor the upside, and look at short-term pullbacks as an opportunity. That being said, I also recognize that we are extraordinarily overbought, and you can see the volatility profile of the market has changed quite drastically over the last couple of months. Markets don’t go in one direction forever, so be aware that we will have the initial pullback that could cause headaches for those who are over-levered. Ultimately, I do think that we are at least going to try to test the $10.00 level.

Natural Gas Price Forecast Video 09.06.22

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