Natural Gas Price Forecast – Natural Gas Markets Go Parabolic Again

Natural Gas Technical Analysis

Natural gas markets have gapped higher to kick off the week, opening up at $8.73 in the front month. That being said, there is a significant amount of resistance above near the $9.45 area, so it’s going to be interesting to see whether or not we can break through there. If we do, then natural gas is almost certainly going to reach the $10.00 level.

This is relatively unprecedented, but quite frankly sooner or later something is going to have to give. The Europeans are going to have to relent to Russia, and we are already starting to see a bit of that happening. When they finally admit that they cannot provide their own natural gas and that they have painted themselves into a corner, natural gas prices are going to crater.

Although you certainly cannot short this market right now, what is worth noting is that the last $2.00 or so has been extraordinarily choppy. We are out of the impulsive phase, and now in the volatile phase. Sooner or later, this will have to end, and when it does there will be a career-making trade just waiting to happen. However, we do not have that scenario yet, so you have to assume that short-term pullbacks will continue to be buying opportunities.

One thing that is worth noting is that the volume is a little light, so that might be something to pay attention to as well. The recent highs were a tweezer top pattern, which will have a lot of retail traders paying attention to it. At this point, it looks as if every dip is thought of as a buying opportunity.

Natural Gas Price Forecast Video 07.06.22

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