Natural Gas Price Forecast – Natural Gas Markets Gap Lower to Kick Off the Week

Natural Gas Price Forecast Video for 06.12.22

Natural Gas Technical Analysis

Natural gas markets have been very negative to kick off the week, gapping down about 7%. Because of this, the market looks as if we are going to continue to see a lot of extreme movement, and quite frankly I think that we’ve got a situation where natural gas has gotten too expensive, and the idea of the Americans providing liquefied natural gas over the longer term in the European Union is a bit of a stretch. Because of this, I think the market has quite a bit of negativity in it, and I think that the $5.50 level is an area where we have seen buyers previously, so I think we are getting ready to test that level again.

If we were to break down below there and go below the $5.00 level, then it’s likely that we could see an even bigger move to the downside. Turning back around and filling the gap is very likely, so now the question is whether or not we can break above there. If we do clear that, then the 200-Day EMA at the $6.72 level could be a bit of a barrier and possibly even a target as a result.

Regardless, the opening on Monday has shown us just how volatile and dangerous this market can be sometimes, so therefore you are going to need to keep an eye on your position sizing, but it shows just how negative things have gotten. The Friday candlestick was horrific, and the opening on Monday only continues this massive selloff. That being said, caution is the better part of valor.

For a look at all of today’s economic events, check out our economic calendar.