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Natural Gas Price Forecast – Natural Gas Markets Have a Horrible Start to the Week
By: Christopher Lewis | May 9, 2022

• The natural gas markets have gapped lower during the open on Monday, turned around to fill that gap, and then fell apart.

Natural Gas Technical Analysis

Natural gas markets have gapped lower to kick off the trading session on Monday, showing signs of further negativity, and continuing the massive selloff that we had seen on Friday. At this point, the market looks as if it is going to threaten the $7.50 level, which has a certain amount of psychology attached to it. If we break it down below there, then the next target will be the $7.00 level.

While this is a very negative look, you need to keep in mind that we are still very much in an uptrend, although it should be noted that British natural gas markets have dropped 40% over the last month. In this scenario, the divergence is out of control, so something will have to give. At this point, the market has to look at the $6.50 level underneath as a massive support level, especially as the area was the scene of a significant breakout from previous resistance, with the 50 Day EMA approaching it as well.

With all that being said, if we were to break down below the $6.50 level, the market then would change the overall trend, but at this point in time I think most people are looking at this as a “buy on the dip” type of market, so obviously it is only a matter of time before buyers should return. Having said that, we are so far overdone that it is quite sensible to think that we needed to pull back in order to find an of value for people to get involved. That being said, I think the only thing you can count on is a lot of volatility.

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