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

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Natural Gas Markets Continue to Undulate
By: Christopher Lewis | November 29, 2022

• Natural gas markets have done quite a bit of chopping around over the last couple of days, as we try to figure out the next move.

Natural Gas Technical Analysis

Natural gas markets have fallen just a bit at the beginning of the trading session on Tuesday, but at this point in time it still looks like a market that is trying to figure out where it’s going longer term. The market will continue to be very noisy and dangerous, so at this point it’s difficult to imagine a scenario where we would see easy trading. In fact, natural gas is extraordinarily dangerous for retail traders, because it relies so much on weather predictions. If you get the weather right, a lot of times you’ll get the market right.

The 50-Day EMA underneath offers support, while the $8.00 level above offers resistance, as we have seen just a few sessions ago. Ultimately, when you look at this chart you can see we are in a huge consolidation area, and basically in the middle of it making this a “50-50 proposition.”

If we break down below the 200-Day EMA, that is likely that we will see a move down to the $5.50 level. The $5.50 level is the beginning of significant support at the bottom of the range, just as if we were to see the market break above the $8.00 level, we could see this market move to the $10.00 level which is the very top of the range.

I think this winter is going to be rather wild for natural gas in general, so position sizing is going to be paramount as the market still tries to figure out what to do with the whole EU situation, although in the future ConocoPhillips will be providing gas from Qatar to Germany.

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