Natural Gas Price Forecast – Natural Gas Markets Find Buyers on a Dip

Natural Gas Technical Analysis

Natural gas markets have initially plunged during the trading session on Friday, but then turned around to find buyers, especially near the $6.00 level. This area is right in the middle of the consolidation area that we have been in for a while, and of course is a large, round, psychologically significant figure. As a general rule, large amounts of money come back and forth into the market in these big figures, so it should not be a huge surprise. That being said, I think you also have to look at this through the prism of whether or not it is bottoming at a much bigger consolidation range.

You could make an argument for the $5.00 level being the bottom of a huge range that runs up to the $10.00 level. We are closer to the bottom than the top, so we could rally, but I think at this point you need to look at this through the prism of a potential rally, but if we were to turn around and break down below the $5.00 level, we would almost certainly collapse.

The 50-Day EMA broke below the 200-Day EMA just above, so I think there is some significant resistance there. If we were to break above the $7.21 level, then it opens up a path to the highs of the range, closer to the $10.00 level above. Regardless, this is a market that you need to be cautious with your position size, because it will continue to be very volatile and prone to sudden spikes in both directions.

Natural Gas Price Forecast Video for 21.11.22

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