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

Natural Gas Technical Analysis

Colder temperatures coming toward North America signaled that it was time to start buying natural gas on Monday it appears, as we gap higher to kick off the trading week. We ended up right at the next resistance barrier, and if we can break above the top of the candlestick from Monday, it’s very likely that this market is looking toward the $8.00 level.

If we do pull back, it’s very likely that the gap should get filled. That means dropping down to near $6.43, and there could be a lot of support in that area. So, if we were to pull back to that area and show signs of a bounce, I am willing to get long. On the other hand, if we turn around and break down below that level, it would be an extraordinarily bearish sign. Remember, natural gas is very difficult to trade due to the fact that weather changes so rapidly. Furthermore, we are going to have the outsized noise of the European Union, and the fact that people are still having dreams of the American supplying the Europeans with natural gas quickly.

The only thing you can do in this market is to be very cautious with your position sizing because the moves could be quite drastic. With that being said, it certainly looks like a shot was fired across the bow of the bears during the trading session on Monday, so now the question is whether or not we are going to see any type of follow-through. If we do, we could end up going all the way to the top of the overall range I have marked on the chart.

Natural Gas Price Forecast Video for 08.11.22

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