Natural Gas Price Forecast – Natural Gas Markets Continue to Recover From Support

Natural Gas Price Forecast Video for 09.12.22

Natural Gas Technical Analysis

Natural gas markets have gapped higher to kick off the trading session on Thursday, showing signs of life again from the recent support level. The market bouncing from the $5.50 area makes a certain amount of sense, due to the fact that we have seen it offer support numerous times. Because of this, it’s likely that we will continue to see a lot of back and forth, and we could see a bit of momentum to the upside in order to fill the gap from previous trading. That could send the market all the way to the $6.29 level.

What’s worth noting is that the most recent bounce that we had seen in the market came nowhere near the top of the overall consolidation area and the $8.00 level is an area where a lot of people are going to be paying attention to. The $8.00 level has a certain amount of psychology attached to it, but more than anything else it shows that we just did not have the momentum last time to return to the resistance level.

At this point, I think we’ve got a short-term bounce just waiting to happen, but at the first signs of exhaustion, I think that sellers will return to start pushing the market back down. It’ll be interesting to see how this happens, because I think the next couple of days could be very noisy in this market. Regardless, keep your position size small because this is probably going to be much more volatile than anything else over the next couple weeks, especially as we are heading for the winter in the northern hemisphere.

For a look at all of today’s economic events, check out our economic calendar.