Price Prediction for Natural Gas – Natural Gas Markets Continue Sideways Momentum

We continue to observe a great deal of erratic behavior on the natural gas markets throughout Thursday’s trading day.

During Thursday’s trading session, natural gas markets initially attempted to advance, but rapidly surrendered those gains. At this time, the market appears to be attempting to steadily grind higher, but there is a great deal of resistance above that may pose significant issues.

As a result, it is highly likely that we will continue to observe disruptive conduct; hence, I am not viewing this through the lens of a major change. Even though the Freeport LNG terminal is still unable to supply gas to Europe, I believe you have a situation where there is a certain level of demand due to the fact that temperatures are beginning to fall in the United States.

You should only trade with capital that you can afford to lose while trading derivatives. The trading of derivatives may not be suitable for all investors; thus, you should ensure that you fully comprehend the risks involved and, if necessary, seek independent counsel. Before entering into a transaction with us, a Product Disclosure Statement (PDS) can be received through this website or upon request from our offices and should be reviewed. Raw Spread accounts offer spreads beginning at 0 pips and commissions of $3.50 every 100k traded. Spreads on standard accounts begin at 1 pip with no additional commission fees. CFD index spreads begin at 0.4 points. This information is not intended for inhabitants of any country or jurisdiction where distribution or use would violate local law or regulation.

The 200-day exponential moving average (EMA) is located near the $6.65 price level, and the 50-day EMA has broken below it in the same region. Breaking above that focuses attention on testing the “island reversal” that occurred approximately two weeks ago. Breaking above the $7.21 mark could pave the way for a larger upward surge.

Nonetheless, it is evident that the market continues to be extremely volatile, and the fact that we were unable to continue going higher indicates that any move to the upside would be met with significant opposition. If we are able to remove the hammer from Wednesday’s session, there is the potential for a decline to the $5.50 level, and potentially even the $5.00 level. Expect volatility and maintain a moderate portfolio size.

Leave a Comment