Natural Gas Price Forecast – Natural Gas Markets Continue to Rise

Christopher Lewis
·2-min read

Natural Gas Technical Analysis

Natural gas markets have rallied during the trading session on Tuesday to break cleanly above the $8.00 level. In fact, as I record the video, we are testing the $8.30 level, and this looks to be a situation where we are trying to get to the highs again. Quite frankly, natural gas continues to rise right along with a lot of energy-related issues, as inflation is starting to take hold. Furthermore, we are in an uptrend and as long as we can remain above the $6.50 level, I still have to look at this through the lens of a market that is more likely than not going to continue rallying.

However, if we do break down below that $6.50 level, something that seems almost impossible in the short term, then it is likely that we break down significantly. I do think that day comes eventually, but at this point, we continue to see a lot of money flow into this market based on potential demand coming out of the European Union. Furthermore, speculative momentum picks up every time there is either temperatures in the United States that are cooler than normal, or warmer and therefore driving the usual supply and demand aspect.

Either way, this is a market that has a lot of momentum overall, and it is almost impossible to fight this type of momentum. Yes, I do think that we are extraordinarily overbought, but markets can remain irrational much longer than you expect, as we have seen over the last couple of weeks. This is a market that unless you get a pullback that shows signs of support, there is probably not a whole lot to do.

Natural Gas Price Forecast Video 18.05.22

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This article was originally posted on FX Empire

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