Natural Gas Price Forecast – Natural Gas Markets Continue to Test Support

Natural Gas Price Forecast Video for 08.12.22

Natural Gas Technical Analysis

Natural gas markets have been noisy in general, due to the fact that the market has formed a massive range. We are currently testing support near the $5.50 level, and therefore I think a little bit of noise is to be expected. Remember, we gapped at the open on Monday, and have yet to fill it. Because of this, I think there could be a bit of a short term rally, but I would anticipate sellers coming back into the market.

Furthermore, the 50-Day EMA is trying to break down below the 200-Day EMA, forming the so-called “death cross.” I’m not a huge fan of that indicator, but some people will pay close attention to it. Nonetheless, I do think that those moving averages also could cause a little bit of resistance as well, so keep that in mind. Ultimately, this is a market that I do think breaks down through the bottom, as demand for natural gas will continue to drop due to the fact that the economy is slowing down so therefore a lot of industrial demand will probably drop.

That being said, I’m not necessarily expecting natural gas to completely collapse, because there’s obviously going to be a significant amount of demand through the winter, but milder temperatures in America have not been helping either. You will notice that I have a purple circle on the chart right at the $8 level, which is lower than the top of the overall range, so it does somewhat foreshadow the possibility of a breakdown. Ultimately, fading rallies will more likely than not be the easiest way to trade natural gas.

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