Natural Gas Technical Analysis
Natural gas markets fell to the $9.00 level but then rebounded to show signs of resilience. It’s a market that will continue to be very noisy, due to the fact that there are so many moving parts at the same time. Looking at this candlestick suggests that the market is trying to bounce back a bit and retest the $10 level. The $10 level is of course a large, round and psychologically significant number, and so it is likely that the market will continue to view this area as a major battleground.
Looking at this chart, it is obvious that if we break it down below the $9.00 level, it is likely that the 50-day EMA will be tested, at the $8.20 level. It’s rising so I suspect there would be some support attached to it, and it’s worth noting that we broke below the low of a rising wedge, but also recovered, showing just how this change is volatile and unpleasant. market will continue to be. At this point, it’s an almost non-tradable market, unless of course you have very deep pockets. Indeed, massive lead times can be quite expensive.
Looking at this chart, I think it’s probably only a matter of time before we go both ways, so I’d be very cautious about position sizes more than anything else. Obviously the market is going to favor the upside in general, but we’re stretching at the same time and, of course, it’s becoming more and more obvious that the Americans won’t be exporting a lot of LNG to the EU, where it’s is most needed.
Natural gas price forecast video for 08.30.22
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