Natural Gas Price Forecast – Natural Gas Markets Fill the Gap

Natural Gas Price Forecast Video for 12.12.22

Natural Gas Technical Analysis

Natural gas markets have rallied significantly during the trading session on Friday, breaking above the top of the shooting star from the Thursday session. We ended up filling the gap from Monday, which of course is common in the futures markets. Now that we have seen that, it’s likely that we could see a little bit of exhaustion that we could sell into. That being said, the 50-Day EMA has dropped just below the 200-Day EMA, and I think there’s a cluster of resistance in that general vicinity.

If we can break above the moving averages, then we could test the $7.00 level, and then perhaps even as high as the $8.00 level where we had formed a massive shooting star. That’s an area that’s of particular interest to me, due to the fact that we have seen the market failed to reach the top of the range when we rallied that time. If we were to blow through that, that would obviously be a very bullish sign.

As things stand right now, I am looking for opportunities to short this market on signs of exhaustion, but we clearly don’t have that. It look like we did at the end of the day on Thursday, but we did not break down below the bottom of the candlestick to confirm the move. Ultimately, this is a situation where we could continue to see a lot of noisy behavior, and perhaps even a tightening of the overall consolidation area. The $5.50 level underneath is significant support and breaking through that could open up massive selling. However, it does not look like we are ready to do that yet.

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