Natural Gas Price Forecast – Natural Gas Markets Pulled Back Again

Natural Gas Technical Analysis

Natural gas markets have fallen hard during the trading session on Wednesday as it looks like the relief rally may already be over. That’s a pretty shallow pop considering how high we had fallen from, so I think this shows just how bearish this market truly is. Industrial demand for natural gas seems to be plummeting, and of course we have output in some parts of the United States that has gas companies almost giving it away. Granted, there’s the noise in Europe, but at the end of the day only so much can be done about that situation as they do not have the capacity to re-gasify enough to power the entire continent.

The 200-Day EMA sits right around the $6.75 level, so a lot of people will be paying close attention to it, but I be a bit surprised if we even get that far up on the chart. Regardless, I think you have to look at signs of exhaustion as an opportunity to start shorting again, and I think this market is probably going to go looking toward the $5.00 level as a potential target.

Given enough time, we could even break down below there and you’re looking toward the $4.50 level, but it’s interesting to see just how brutal this selloff has been, not necessarily that there are huge red candles all over the place, but it’s been rather relentless, which in some ways is actually worse. Beyond that, we also have the 50-Day EMA dropping and looking likely to try to break down below the 200-Day EMA, forming the so-called “death cross.”

Natural Gas Price Forecast Video for 27.10.22

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