Oil & Gas - Energy - Commodities - Resources (OILBRENT)

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Natural Gas Markets Continue to Consolidate in Choppy Action
By: Christopher Lewis | August 4, 2022

• The natural gas markets have gone back and forth during the day on Thursday as we continue to try to figure out where we go next.

Natural Gas Technical Analysis

Natural gas markets have gone back and forth on Thursday in a rather choppy trading action. Because of this, the market looks very likely to continue seeing a lot of back-and-forths, so you need to be cautious about your position sizing. The market breaking down below the lows of the previous session could be a very negative sign, but the 50 Day EMA is sitting just below, and that could come into the picture as well, as it does sometimes offer technical support.

If we break down below the 50 Day EMA, it’s possible that certain algorithms will fire off selling opportunities. On the other hand, if we do rally from here, the $9.00 level should be massive resistance as well. Ultimately, if we were to break above there could change a lot of things, but it doesn’t necessarily look like it’s going to happen anytime soon.

More likely than not, we have a situation where we are picking up volatility, and trying to read into whether or not there is going to be a lot of short-term volatility that you can take advantage of is probably going to be the way going forward. A short-term range-bound system should perform fairly well, with an eye on the downside.

All things being equal, this is a market that may have just hit a double top, but with the Freeport terminal seemingly coming back online quicker than anticipated, there could be another leg of that “bidding up for European LNG trade.” That being said, it would not take much to squash that again.

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