Natural Gas Price Forecast – Natural Gas Markets Continue to Stabilize

Natural Gas Price Forecast Video for 01.12.22

Natural Gas Technical Analysis

Natural gas markets have pulled back just a bit during the trading session on Wednesday to show signs of hesitation, as we continue to see a lot of noisy behavior in this market, I anticipate that we are going to try to find the floor. The 50-Day EMA is likely to offer a bit of support near the $6.88 level, which sits just above the $6.74 level. Ultimately, there’s a lot of technical support underneath that I think could come back into the picture, thereby lifting the market just a bit.

If we break down below the 200-Day EMA, then it’s likely that the market could go down to the $6.00 level. On the other hand, if we were to take off above the $7.50 level, then I think we could see the market go looking to the $8.00 level. The $8.00 level has offered resistance recently, so now I think it’s going to be difficult to get above. It’s not that we can’t, it’s just that the market will more likely than not continue to see a lot of volatility.

Keep in mind that we are in a typically bullish time of year for natural gas, and it’s probably worth noting that the futures markets are trading the January contract right now. Ultimately, this is a situation where we are going to see a lot of noisy behavior, but quite frankly that should probably not be a huge surprise as natural gas is extraordinarily volatile to begin with. Looking for longer-term moves can often be difficult, unless you can ride through that volatility, so that is something that you have to keep in mind if you are going to trade this market. Right now, it looks like we are ready to chop around.

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