Natural Gas Price Forecast – Natural Gas Markets Have Brutal Open

Natural Gas Technical Analysis

Natural gas markets have fallen rather hard to kick off the Tuesday session, as Americans have come back to work. At this point, it looks as if the market is trying to figure out what to do next, as we have been so overbought. Furthermore, we are starting to see signs of cracks in the European solidarity, so therefore it’s possible that we will see natural gas markets reflect this.

That being said, we had been a bit parabolic so at the very least I would anticipate that we continue to see a bit of chopping back and forth, as we are trying to work off the froth from the big move. When markets overbought the way that natural gas had been, it makes sense that you would have to see a little bit of churning. Ultimately, this is a market that has a lot of work to do, in order to either go higher or break down below there. If we break down below the $8.00 level, then the market could go looking to the 50 Day EMA, which since at the $7.27 area.

You could make an argument for a bit of a rising wedge, but I think it’s early to call for some type of shorting opportunity. You have to assume that the overbought condition will continue until it stops. I know that sounds a bit opaque, but that’s the reality of trading a market that has run away the way this one has. The market seems to have a bit of a ceiling near the $9.50 level, so if we were to break above there, it’s likely that the market could go looking to reach the $10.00 level.

Natural Gas Price Forecast Video 01.06.22

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