Natural Gas Price Forecast – Natural Gas Markets Rise Slightly
Natural Gas Technical Analysis
Natural gas markets rose slightly during the trading session on Tuesday as we continue to dance around the 50-Day EMA. This indicator of course is followed by a lot of traders around the world, but at this point in time, the natural gas markets are in their own world. The volatility continues to pick up and it looks like the $8.00 level is at least going to attempt to offer some type of support. I do believe that eventually, this becomes a “fade the rally” market, especially now that it appears many of the large European countries have stored enough gas to at least try to get through the winter.
That being said, this is still a very fluid situation, and things are only deteriorating. Because of this, I think you need to be very cautious and quite frankly, the only way I would trade the natural gas markets at this point is to do it through the options market. Unfortunately, the premium is very high because of the insane amount of volatility, so you have to keep that in mind as well.
As a general rule, natural gas is not a retail market, because it relies so much on wheather in the United States or sometimes news about places like the Fremont terminal and whether or not the repairs are coming along in a timely fashion. After all, there has to be the ability for the United States to send LNG overseas for Europe to receive it. Beyond that, you also have to understand the European LNG network, because you don’t just simply ship LNG, you have to turn it back into gas once it gets there, and those facilities in the EU are already running at full tilt.
Natural Gas Price Forecast Video for 14.09.22
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