Price Prediction for Natural Gas – Natural Gas Markets Continue to Test Support

During Wednesday’s trading session, natural gas prices rebounded somewhat near support as we continue to oscillate within a significant range.

In general, natural gas markets have been turbulent since the market has developed a wide range. We are currently testing support near $5.50, so I believe a little amount of volatility is to be expected. Remember that we had an opening gap on Monday and have yet to close it. Because of this, I believe there could be a short-term bounce, but I foresee a return of sellers to the market.

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In addition, the 50-Day EMA is attempting to fall beneath the 200-Day EMA, making the so-called “death cross.” Although I’m not a major admirer of this signal, some individuals will pay close attention to it. Nonetheless, I believe that these moving averages may also generate a small amount of resistance, so keep that in mind. Ultimately, this is a market that I believe breaks through the bottom, as demand for natural gas will continue to decline as a result of the weakening economy, leading to a decline in industrial demand.

Nevertheless, I do not anticipate a full collapse in natural gas prices, as there will be a substantial amount of demand over the winter, but warmer temperatures in the United States have not helped. You will notice that I have placed a purple circle at the $8 level on the chart, which is lower than the top of the entire range, so it does anticipate the likelihood of a collapse to some extent. Ultimately, fading rallies will likely be the simplest method for trading natural gas.

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