Natural Gas Price Forecast – Natural Gas Markets Gap Lower

Natural Gas Technical Analysis

Natural gas markets have gapped lower to show signs of weakness yet again at the open on Monday. By doing so, the market is well below the $8.00 level, but it is showing signs of volatility. Given enough time, I do think that we continue to go lower simply because we got far too overstretched. There are other reasons obviously, not the least of which will be the fact that the heat wave in the United States is essentially over. The Americans are not supplying the Europeans with natural gas, so what’s going on over there only has a somewhat backdoor effect on this market.

The 50 Day EMA underneath is more likely than not going to be the target in the short term, although we could get the occasional bounce. Those bounces that show signs of exhaustion will be selling opportunities for what I can tell, and I will use them as such. With that being the case, I like the idea of shorting at the first signs of exhaustion after we do bounce because it should give you plenty of room to run.

Natural gas markets have been all over the place, mainly due to the Russian gas situation in the European Union, but one day, people woke up and realize that this is a US-based contract and that the United States cannot supply enough LNG to make up the difference. Once that happened, we started to see the market selloff. The most recent shot higher had more to do with the exacerbated and volatile situation. That particular move made quite a bit more sense, just as a pullback from here now that it’s out of the forefront does.

Natural Gas Price Forecast Video for 02.08.22

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