Natural Gas Price Forecast – Natural Gas Markets Continue to Probe Lower

Natural Gas Price Forecast Video for 05.12.22

Natural Gas Technical Analysis

Natural gas markets have been negative during the trading session on Friday, as we have dipped below the 200-Day EMA. That being said, the market still looks as if it is trying to figure out what to do next, and with the nasty volatility that we continue to see, it’s not going to be easy. It’s worth noting the buyers came back into the game late during the day, suggesting that perhaps they are going to try to defend. The natural gas markets will continue to be very choppy, which is not a huge price considering action that we have seen over the last couple of months. Given enough time, I do think that we will eventually see buyers though.

If we were to break down below the bottom of the candlestick, then I think it opens up the possibility of a move down to the $6.00 level. The $6.00 level is obviously an area that a lot of people would pay attention to from a psychology standpoint, as it is a big round figure. If we break down below there, that could be really ugly for this market. On the other hand, if we turn around break above the 50-Day EMA it opens up the possibility of a move to the $8.00 level given enough time.

Look at this chart, I think we have nothing but choppiness ahead of us, so you do need to be cautious and therefore I would be very concerned about position sizing at this point. We have a wide range, but that’s been the case for some time and I think that continues to be the case.

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