Natural Gas Price Forecast – Natural Gas Markets Stabilize

Natural Gas Technical Analysis

Natural gas markets have dipped again during the trading session on Tuesday as it looks like we continue to see a lot of negativity. That being said, we did stabilize a bit so that’s a good sign and it’s the first attempt at trying to make this market somewhat stable. A little bit of a recovery rally does make quite a bit of sense, so I think it’s probably only a matter of time before we get that bounce.

That bounce more likely than not will be something that I start selling, because quite frankly it is a situation where the volatility continues to keep people out of the market. Furthermore, we are starting to see a little bit of stabilization after a massive move higher, followed by a couple of whiplash type moves back and forth.

You need to be cautious with your position size regardless of which direction you choose to trade, but right now I am looking to fade rallies as they should give opportunity. Markets will continue to be very skittish, and at this point in time it’s very difficult to commit a lot of trading capital to anyone particular position. Quite frankly, I think this is a place where you could get hurt quite seriously, so you need to understand just how much trouble you could find if you are not cautious.

Quite frankly, natural gas is rarely a decent retail market, and most certainly will not be now that we have all of this nonsense in Europe going on, as well as hurricanes hitting the southeastern part of the United States. Short-term rally makes quite a bit of sense, followed by aggressive shorting.

Natural Gas Price Forecast Video for 05.10.22

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