Natural Gas Price Forecast – Natural Gas Markets Continue to See Volatility

Natural Gas Technical Analysis

Natural Gas continues to be very noisy, as we initially pulled back during the trading session on Friday, only to turn around and show signs of strength again. By doing so, the market looks as if it is trying to figure out what to do with this consolidation area, which makes quite a bit of sense considering we had been so oversold previously. The 50 Day EMA has sloped lower yet again and it looks like we are ready to go forward looking at that as a potential resistance barrier.

If we break down below the bottom of the range for the Friday session, it’s likely that we see further downward pressure. If we break down below the $6.45 level, then the 200 Day EMA gets targeted. That is near the $5.85 level, and going sideways. That would attract a lot of attention, and I think it’s probably only a matter of time before we see that area not only get tested but show signs of life.

That being said, we no longer have to worry about the European Union taking a huge portion of the US gas supplies, because quite frankly the United States is not going to be able to provide it. Ultimately, if we break above the 50 Day EMA, then we could go looking to the $7.50 level, possibly even the $8.00 level. That being said, I don’t necessarily think we are about to see that unless of course, something changes quite drastically. At this point, the US dollar also works against the value of natural gas as well. If we are going to have a massive slow down economically, that also means that we should have less demand as well.

Natural Gas Price Forecast Video for 18.07.22

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