Natural Gas Weekly Price Forecast – Natural Gas Markets Continue to Plunge

Natural Gas Weekly Technical Analysis

Natural gas markets had rallied initially during the week but then fell hard as we sliced through the neckline of a significant head and shoulders topping pattern, suggesting that perhaps the bullish run is over. Whether or not that’s the case remains to be seen, but clearly, the market had gotten far ahead of itself. In fact, when you zoom way out, you can almost make an argument that another push higher could be bearish due to the fact that it would be a massive “rising wedge.”

The 50-Week EMA is sitting near the $6.50 level, and I think will continue to attract a lot of attention. Breaking down below that level creates the possibility of the floor falling out of this market, which quite frankly had no business whatsoever being that high to begin with. After all, the Americans were not going to step into the export business quickly enough for LNG to save the Europeans. Furthermore, the Europeans claim they have enough gas for this winter, so this should be interesting.

Anytime this market rallies, I will be looking at it with suspicion, because I do believe that it is probably only a matter of time before plenty of people will step into the market and start shortening again. The natural gas markets have been overdone for quite some time, and I think that continues to be the case. The US dollar is also a bit like a wrecking ball, as it has destroyed almost everything. With global growth slowing down, it does make quite a sense that we would continue to see energy take a bit of a beating.

Natural Gas Price Forecast Video for the Week of 26.09.22

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