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

Natural Gas Technical Analysis

Natural gas markets have been very noisy during the trading session on Tuesday as we are sitting just above the 50 Day EMA. There is a lot of push and pull to this market because quite frankly it’s a very thin market under the best of circumstances. The natural gas markets are being thrown around by the nonsense going on between the Russians and the Europeans, and now that Russia has essentially cut Germany off from natural gas, people would expect this market to go higher. That being said, most people don’t realize this is a US-based market.

There was a point in time where people had fantasies of the United States providing the European Union all of its LNG. That being said, the reality is much different. Quite frankly, the Americans do not have the refining capacity to make that happen, and shipping liquefied natural gas is very difficult to do. That realization is shown by the massive selloff that we had seen in the market previously. Because of this, I think we had to eventually have some type of bounce, and we are getting close to the top of it from what I can see. The previous uptrend line is an area where there could be a significant amount of resistance, especially as it ties into the $8.00 level.

Yes, there’s a heat wave in the United States and demand is starting to pick up. That being said, the reality is that it is only a matter of time before we fall because quite frankly supply and demand will demand it. Natural gas is something that the US certainly has plenty of.

Natural Gas Price Forecast Video for 20.07.22

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