Natural Gas Price Forecast – Natural Gas Markets Continue to Look Soft

Natural Gas Technical Analysis

Natural gas markets have Lower to kick off the trading session on Thursday but then turned around to show signs of life again. At this point, the market looks as if it is going to continue to fight around the $6.50 level, but eventually could break down rather significantly. In that scenario, I fully anticipate that the market will continue to sell rallies, and quite frankly it should considering that demand is cratering.

The story about the Europeans buying liquefied natural gas and how the United States is crumbling, as the Fremont terminal has stopped functioning. Ultimately, this is a market that is now likely to go down to the 200 Day EMA at the $5.83 level, and then possibly break down below there and go to the $5.00 level. This is a market that I think continues to see a lot of “sell on the rally” type of situation and as the market will start to focus on the domestic demand situation.

Because of this, it should continue to fall, and I think it’s only a matter of time before we drop all the way to the $5.00 level. Rallies at this point in time or selling opportunities, and the 50 Day EMA at the $7.35 level is an area where we would see selling pressure as well.

Ultimately, this is a market that I think continues to see a lot of noisy behavior, and as we have broken down quite drastically, it makes sense that we will have a bit of follow-through. Ultimately, I like the idea of fading rallies going forward, because I believe we will continue to see plenty of noise in general.

Natural Gas Price Forecast Video for 01.07.22

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