Natural Gas Price Forecast – Natural Gas Markets Have an Inside Day

Natural Gas Technical Analysis

Natural gas markets had gapped lower kicking off the trading session on Friday to show signs of weakness yet again. We did rally a bit and then turned around to show signs of exhaustion. The 200 Day EMA is at $5.82 will cause a bit of support in theory, but if we break down below there, then it’s likely that we could go down to the $5.40 level. The market is a little oversold, so a recovery rally makes a certain amount of sense, but natural gas demand will continue to drop.

The size of the candlestick from Thursday is rather impressive, but it should be noted that the volume wasn’t anything exceptional, and therefore it’s more likely than not short covering than anything else. The 50 Day EMA is sitting just above the $7.00 level, and that’s an area where I think we would see a lot of resistance as well. This is a market that has been selling offers quite a bit, so again, markets cannot go straight down or up forever.

Now that we have seen this market bounce a bit, it has more of a chance to work off some of the downward froth, and then start shorting again. The market breaking down below the recent lows opens up the possibility of a move down to the $5.00 level. That is a large, round, psychologically significant figure, and if we were to break down below there, I think it would only accelerate the selling pressure. I don’t really have a scenario which I’m willing to buy natural gas at the moment, although if things fundamentally change I am open to it.

Natural Gas Price Forecast Video for 11.07.22

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