Natural Gas Price Forecast – Natural Gas Markets Spike

Natural Gas Technical Analysis

Natural gas markets have rallied rather significantly during the trading session on Tuesday to pierce the $9.00 level. However, it’s probably worth noting that the market has quite a bit of volatility ahead of it as we are struggling in this general vicinity, and we also have options expiration happening.

Natural gas markets have also gotten a little bit ahead of themselves, so it does make sense that we would see a bit of a giveback. Whether or not we can break out is a completely different question, but it is worth noting that the heat in the United States is starting to subside, and therefore demand could drop a little bit. Ultimately, I think this is a scenario where you would see a lot of noisy behavior, and therefore I think what we have is a situation where we are overbought, and that’s probably the most important thing that you can take away from this chart.

If we were to break down below the $8.00 level, I think that will accelerate the move back down to the levels. However, if we take out the recent high, then we will be threatening the $10.00 level. That of course is a ridiculous level, so I think what we have is also a massive psychological barrier. If you have been following me for the last several days, I have told you I’ve been looking for an opportunity to short this market. I think we may be starting to see the first remnants of that potential setup, so stay tuned, because I believe that there is a nice swing trade just waiting for us to get involved.

Natural Gas Price Forecast Video for 27.07.22

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