Natural Gas Weekly Price Forecast – Natural Gas Markets Bounce From Major Support
Natural Gas Price Forecast Video for 12.12.22
Natural Gas Weekly Technical Analysis
Natural gas markets have fallen hard during the trading week to test the $5.50 level, an area that has been major support more than once. By bouncing the way that we have, we have formed a bit of a hammer, but at this point it’s very unlikely that we would see an easy route higher. If we do take off, keep in mind that the $8.00 level has offered significant resistance as of late. I think at this point, it’s probably more likely than not that we are going to see a new range developed.
If we were to break down below the bottom of the candlestick, they could open up a move for an attack on the $5.00 level, and then possibly down to the 200-Week EMA closer to the $4.50 level. On the other hand, if we can break above the $8.00 level, we could open up a move to the $10.00 level, but obviously we would need to see some type of catalyst to make that happen. When I look at this chart, this screams more noise, and the fact that we are heading to the end of the year probably has a lot to do with that as well. After all, liquidity will disappear in about a week, and therefore the market could very well find itself stagnant.
Having said that, a lack of liquidity can also cause major issues if there is some type of headline that crosses the wires. The most obvious one would have something to do with Russia or Ukraine, but at this point anything is possible. All things being equal, I think we are going to continue to bounce between $5.50 on the bottom and $8.00 on the top.
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