Natural Gas Price Forecast – Natural Gas Markets Have Quiet Friday

Natural gas markets have gone back and forth during the course of the trading session on Friday, as we continue to hang around the $3.90 level. It is worth noting that this area has been consolidation for what seems like a lifetime, and therefore one would have to think that you have to bank on continuation of what we have been dealing with. All things being equal, this is a market that I think will continue to see a lot of chop, but the 200 day EMA above at the $4.09 level should continue to be significant resistance, as it has been relatively reliable. The 50 day EMA is starting to slide down towards it, which of course could kick off the so-called “death cross.” That being said, a lot of longer-term traders will be paying close attention to it.

NATGAS Video 10.01.22

To the downside, the $3.50 level should continue to offer plenty of support, as it is a “midcentury mark”, and of course an area where we have seen plenty of support. All things being equal, this is a market that will continue to be choppy and sideways more than anything else, but ultimately it almost certainly needs to break down due to the fact that temperatures in the United States continue to stay warm. The demand for natural gas will continue to drop, and that of course will send prices plunging. Granted, the Americans are exporting more LNG now than usual, but that is not going to be enough to move the market. Fading rallies continues to be the best play I have going forward, so therefore I have no interest in buying.

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