Natural Gas Price Outlook – Natural Gas Continues to Rally

Natural Gas Technical Analysis

The natural gas markets have shot straight up in the air, gaining almost 14% at one point, as it now looks like there will be no Russian gas for the EU this winter. And if that’s the case, the only option the EU really has is to buy from the Americans. And that’s what you’re seeing here. So, with that situation brewing and the fact that oddly enough, there is still Russian gas being negotiated that goes through Ukraine into the European Union while there’s a war there.

It really could put the squeeze on the natural gas markets overall. Temperatures in America are going to plummet over the next couple of weeks, but this is a temporary issue. The issue in the European union is a completely different scenario altogether. So as we are near the $4.20 level, there isn’t much in the way of resistance until we get to $5. That does not mean that you chase this gap higher.

What it means is you look for pullbacks to take advantage of. We will have to sort out where the next support level is going to be. I’m going to guess, and this is just simply a guess here, that it’ll be $4. We’ll just have to wait and see. But I’m looking for a pullback and a little bit of a bounce for continuation. To chase it up almost 14% is reckless and a great way to destroy your account, especially if you do it with leverage. Keep in mind though, on top of that, liquidity is probably a little thinner, so it may have made that move a little exaggerated.

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