Natural Gas Price Forecast – Natural Gas Markets Test Crucial Support

Natural Gas Technical Analysis

Natural gas markets have gapped lower to kick off the trading session on Tuesday, as we continue to see a lot of negativity in this market. The $6.50 level is an area that I mentioned previously, and as long as we can stay above there, it’s likely that we at least have some type of hope.

I mentioned this area as a potential gateway to even further losses, which makes sense considering that the Freeport terminal cannot produce enough LNG for Europe, so therefore the Europeans are not going to be buying a lot of US natural gas. Keep in mind this is a US contract so that’s what you are seeing play out here.

Any balance at this point in time suggests that we are going to continue to see selling pressure at higher levels, especially near the 50 Day EMA. The $8.00 level is a massive resistant barrier as well, so I think looking for signs of exhaustion is going to be a potential trade setup. I have no interest in trying to get too cute with this market because quite frankly the demand is going to crash and burn over the next several months. Yes, there is a little bit of a heat wave going on in the United States, but that’s a short-term scenario.

Ultimately, some type of balance gives us an opportunity to take advantage of what I think is a freefalling type of trend that is developing, and I think will accelerate. Remember, that huge candlestick I mentioned from last week, because those types of moves don’t happen in a vacuum. In other words, I think there’s more pressure coming.

Natural Gas Price Forecast Video for 22.06.22

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