Natural Gas Price Forecast – Natural Gas Markets Give Up Early Gains

Natural gas markets initially tried to rally during the trading session on Tuesday, but then gave back gains to form a bit of a shooting star. This should not be a huge surprise, because quite frankly natural gas seems like it cannot off its back. Ultimately, the market will continue to see the higher temperatures in the United States has a major problem, and therefore will of course weigh upon pricing. Furthermore, we have the 200 day EMA above at the $4.10 level offering a bit of a brick wall, and therefore I think it is difficult to get above there.

NATGAS Video 05.01.22

To the downside, the $3.50 level will continue to be supportive, and therefore you should look at it as the bottom of the overall consolidation range that we are stuck in. All things being equal, if we break down below there, and I think we will eventually, it could open up a move down to the $3.00 level. That is the measured move of the triangle above that we broke through, and furthermore it is also an area that we had been comfortable at previously. The $3.00 level has been a bit of a magnet for price going back several years, so it all kind of ties together nicely.

In the short term, I will simply fade any short-term rallies that show signs of exhaustion, just as I have been saying for some time. We are already trading the February contract, and before you know it we will be talking about springtime contracts in America, and the coldest part of the year had already come and gone.

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