Natural Gas Price Forecast – Natural Gas Markets Stabilize Again

Natural Gas Technical Analysis

Natural gas markets have stabilized during the trading session on Thursday, as we continue to meander around the $6.50 level. This is an area that roughly coincides with the bottom of the huge channel that I have drawn on the daily chart. The 200-Day EMA sits above and is offering a significant amount of resistance. The $6.82 level is an area that will essentially be thought of as a “point of fair value.” Ultimately, we can break above there it’s likely that the market could go looking to the $7.25 level.

Any move above there opens up the possibility of the 50-Day EMA being targeted. If we were to break above the 50-Day EMA, it would obviously be a huge event, opening up the possibility of a move to the $8 level. That would be the “centerline” of the overall channel, and therefore would attract a lot of attention.

On the other hand, we could break down through the uptrend line and open up the possibility of going down to the $6.00 level. The $6.00 level is a large, round, psychologically significant figure, and therefore I would anticipate that there would be a little bit of a fight there. Underneath there, then we go looking to the $5.50 level.

Quite frankly, this is a market that I think is so volatile that you need to be very cautious with your position sizing, and you really cannot trust much at this point. This is what happens when the markets are being moved by not only fundamentals, but technicals, and geopolitics. In other words, anticipate a lot of noisy and difficult trading ahead so therefore keep your position sizing appropriate.

Natural Gas Price Forecast Video for 14.10.22

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