Natural Gas Weekly Technical Analysis
Natural gas markets have been very negative for a while, as we have seen so much in the way of demand destruction. The question now is whether or not we can continue to see that, and I think although that’s very possible, we do need to bounce a bit as we continue to see a lot of volatility in most markets around the world. At this point, I believe that the $8.00 level could be a significant barrier, so breaking above there could change a lot of things.
However, it’s worth noting that the random explosion of Russian pipelines in the European Union did very little to lift the price of natural gas, showing you just how exhausted this market is after the chaos that has ensued all year. The situation in the natural gas area is a bit interesting to pay attention to, because European countries supposedly have enough to last through the winter. That being said, the question then becomes what happens after that? Russian gas is not coming anytime soon, and quite frankly the Americans cannot supply enough LNG to keep Europe afloat.
Something’s going to break sooner or later, but at this point I think we probably have more downward pressure than up, pending a short-term relief rally. If we were to break down below the bottom of the candlestick for the week, then it opens up the possibility of a move down to the $6.00 level, which of course is a large, round, psychologically significant figure and an area where we have seen some action at previously. “Market memory” comes to mind in that region.
Natural Gas Price Forecast Video for the Week of 03.10.22
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